New research from Mortgage Advice Bureau (MAB) showed that today’s first time buyers are prioritising space, energy efficiency, and location when searching for a property, with many prepared to delay their purchase in order to secure a home better suited to their future plans.
Rachel Geddes, strategic lender relationship director at MAB, said that first-time buyers are being “far more deliberate about the type of property they choose and the lifestyle they want their first home to support”.
Space is a priority
The findings suggest many aspiring buyers are increasingly viewing their first property as a long-term lifestyle decision rather than a short-term stepping stone.
Figures showed that finding enough space for a growing family was the biggest reason to delay a purchase and secure the right home, with 45% saying this was their biggest motivation. Other big draws were energy efficiency and lower monthly running costs, central living and proximity to urban amenities, the potential to add value and customise a fixer-upper or prioritising top school catchments or specific communities.
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As a result, almost half (48%) of first-time buyers are planning to buy a house straight away rather than the standard flat.
Buyers planning to purchase a house are more likely to prioritise space, with 51% saying more internal or external space for a growing family is their key motivation, compared with 39% of buyers planning to purchase a flat.
Meanwhile, buyers opting for flats are more focused on location and connectivity, with 35% citing access to specific communities, schools or urban amenities as a key factor, compared with 23% of house buyers.
Lack of awareness delays purchasing
However, the study also showed that many first-time buyers didn’t know that there were helpful schemes available.
“While saving for a deposit remains one of the biggest challenges, many buyers are unaware of the schemes, mortgage products, and affordability options that may already be available to help them achieve their homeownership goals,” Geddes said.
“Speaking to a mortgage broker early – even if you’re only starting to think about buying your first home – can help buyers better understand what they can realistically afford, identify lenders best suited to their circumstances, and potentially get onto the property ladder sooner than they expected.
The news comes after recent figures from MAB showing that many first-time buyers were unaware they could borrow more money than previously. Research 1,000 renters planning to buy their first home found that 50% did not know they could access a larger loan now than 12 months ago, with 27% saying the biggest barrier to buying was saving for a deposit.
Victoria Thompson, head of strategic partnerships at Barclays, said: “We know first-time buyers face real barriers, which is why support-based solutions are so important. Designed to help buyers onto the property ladder sooner, [our] Springboard mortgages allow buyers to borrow up to 100% of a property’s value by linking their mortgage to a friend or relative’s savings.
“This type of mortgage can be a valuable option for potential homeowners who might otherwise struggle to secure a traditional mortgage due to a lack of sufficient deposit. It also enables family members to help in a significant way without permanently parting with their savings. Where suitable, responsible, and with expert advice, it can offer a practical and efficient route to homeownership.”
Aidan Walker, senior national account and first time buyer lead, Skipton Building Society, added: “As Mortgage Advice Bureau’s research highlights, the journey to homeownership is becoming longer and more complex, making expert mortgage advice more valuable than ever.
“However, not everyone is aware of the range of routes available to support different circumstances, or whether they may be suitable for their individual situation. Engaging with a broker at the start of the homebuying journey can help identify the most appropriate route to homeownership, ensuring decisions are aligned with their financial position and future plans.”
