According to the latest annual survey commissioned by Barratt Homes, finding the right property has overtaken both accumulating the required deposit and mortgage approval as the greatest barrier to homeownership.
In 2011, 39% of respondents cited saving a deposit as the biggest challenge, followed by finding a mortgage (30%). Finding the right property came in third at 17%. By contrast, in 2012, 30% cited finding the right property as the greatest obstacle to becoming a homeowner, followed by saving a deposit (26%) and finding a mortgage (15%).
Commenting on the findings, a Barratt Developments spokesperson said:
“There has clearly been a shift in the market with a growing belief that the availability of mortgage finance has become a little easier – that’s got to be good news for homebuyers.
“However, customers are overestimating the size of the deposit that they would need, sometimes by as much as three times – the equivalent of £25,000, rather than £8,000 on a £160,000 new-build home – particularly as 95% Government-backed mortgages become established in the market.”
In the broader market, as opposed to the new-build sector, saving deposit continues to be the greatest barrier to homeownership for 59% of aspiring homeowners.
Among new-build property seekers, buying a property continues to rank much more highly than getting married or having children in terms of ‘getting on with life’ with 83% of those surveyed rating it as 8/10 or above. This can be compared to 61% and 55% rating marriage and having children, respectively, at 8/10.
When it comes to desirable features of properties, off-road parking was cited as the most important factor, followed by an en-suite bathroom, and a low maintenance garden was more important for the over 55s.
