First-time buyers often struggle to understand the various options available for affordable home ownership, according to recent research conducted by NHG Homes. The survey, which included 500 renters in London, revealed that many potential buyers are unaware of the routes to purchasing their first home without requiring large deposits or hefty mortgage payments.
One of the key findings of the research was the lack of awareness surrounding Shared Ownership, a low-cost home ownership scheme. While 86% of respondents had heard of Shared Ownership, only half of them could accurately define the scheme. Additionally, 37% of those surveyed found Shared Ownership to be too complex, further hindering their ability to utilize the scheme.
Deposits emerged as a significant obstacle for first-time buyers, particularly in London where the required amount is notably high. Half of the survey participants stated that they could access £15,000 or less for a house deposit, which is insufficient to purchase a property on the open market in London. The average deposit held by potential buyers was found to be £22,963, far below the amount needed to buy an average one-bedroom home in the capital.
Furthermore, the research highlighted a gender disparity in savings for deposits, with single men having on average £11,500 more saved than single women. This discrepancy underscores the challenges faced by women in entering the property market.
In response to the affordability crisis, Londoners are exploring innovative ways to overcome financial barriers to home ownership. For instance, 48% of 18-24-year-olds surveyed expressed their intention to take on extra work to save for a house deposit. Additionally, a significant number of respondents are relying on financial support from family members to secure their deposits, with 25% of those aged 35-44 and 18% of those aged 18-24 planning to use funds from their parents or other relatives.
Diana Alam, the director of sales and marketing at NHG Homes, emphasized the importance of educating first-time buyers about the available options for affordable home ownership. She noted that many buyers are unaware that they can purchase their first home without substantial deposits or large mortgage payments. NHG Homes is committed to empowering buyers by providing them with information about different home ownership schemes, such as Shared Ownership, and enabling them to make informed decisions about their housing options.
Alam stressed that while house prices may be fluctuating, affordability remains a significant challenge, especially in London. By raising awareness about affordable home ownership options and supporting buyers in navigating the property market, NHG Homes aims to empower more individuals to achieve their dream of owning a home in the capital.
