Pandemic pressures leave would-be first-time buyers further from homeownership
The impact of the pandemic, both on the property market and on personal finances, has left a gulf between struggling would-be first-time buyers and those already on the ladder.
More than four-in-10 first-time buyers delayed plans to buy a home in 2020, with the majority saying raising a deposit is the biggest barrier to homeownership, according to research by Santander.
The price of the average UK home has rocketed in the last year, with the government’s stamp duty holiday being the main driver of property prices.
Young, potential first-time buyers have also taken a hit to their personal finances that is disproportionate to any other generation.
Less than one in five (17%) would be first-time buyers said lockdown had enabled them to save more money for a deposit, compared to 31 per cent of all buyer types.
Young people more harshly felt the effects of furlough, unemployment and reduced income during Covid-19, while many continue to grapple with the costs of renting.
In addition, more than half (54%) of first-time buyers believe that financial support for the all-important Bank of Mum and Dad will be less available post-pandemic.
Tracie Pearce, chief customer officer of home at Santander said: “The impact of the pandemic on the housing market has been significant, with many people reassessing what they want from their homes and making the most of a booming market and government support with stamp duty.
“However, many younger people looking to take their first step on the property ladder have seen their earnings and job prospects hit hard, impacting their dreams of homeownership.
“Our report highlights that it is now really important that industry and government reflect on the last year and work together to make defining changes to support a new generation of first-time buyers.”