First-time buyers in the UK are embracing newfound confidence in their pursuit of the dream of homeownership, according to a recent survey conducted by HSBC UK.
As the nation navigates through economic challenges, nearly 7 in 10 (68%) first-time buyers express increased optimism about securing the keys to their dream home compared to the beginning of the year. This surge in confidence is accompanied by a host of reasons motivating individuals to step onto the property ladder.
Interestingly, the majority of aspiring homeowners (73%) are actively seeking properties that require a bit of tender loving care—a doer-upper. This trend is attributed to the desire to keep initial costs down, showcasing the practical and budget-conscious mindset of today’s homebuyers.
When delving into the motivations behind the decision to buy, it becomes clear that for 21% of first-time buyers, the primary allure lies in the fact that homeownership is now more economical than renting. Independence (20%), financial security (17%), and providing for family (14%) also rank high on the list of driving factors, while only a fraction (11%) consider their first home as an investment.
Andrew Matson, Head of Mortgages at HSBC UK, commented on the positive shift: “At HSBC UK, we have been supporting our customers through the recent economic challenges in a number of ways, this includes providing support under the Mortgage Charter. We have also developed an online guide for first time buyers and I would encourage anyone looking to purchase their first home to use the guide.
“While we don’t have a crystal ball to see what the future holds, it is pleasing to see the positive sentiment running throughout our research and we will continue to lean in to help support our customers.”
The survey also unveiled regional nuances in preferences and confidence levels. In major cities like London, Manchester, and Newcastle, the desire for “independence” took precedence, while in Liverpool, it was all about “financial security.”
When it comes to financial confidence, Wales (64%) and Yorkshire and the Humber (63%) lead the pack, while the East Midlands (52%), the North East (53%), and Northern Ireland (53%) express lower levels of confidence in affording a mortgage deposit.
The journey to finding a suitable mortgage provider unfolds through various channels. A significant portion (41%) relies on brokers or financial advisers, followed by mortgage provider websites (30%), online comparison sites (28%), money-saving websites (25%), and recommendations from friends and family (22%).
