Recent research suggests that three out of four first-time buyers are shopping for a house under the average house price.
Currently the average house price is £184,152. Up to 300,000 prospective buyers are looking for houses exceeding that price, and are willing to pay up to £250,000.
However, they are in the minority, as most first-time buyers are looking for a bargain, as well as being optimistic about their chances. Figures show that this quarter, 22 per cent felt they could not afford to buy a house, down from 28 per cent last quarter.
Stephen Leonard, director of mortgages at Alliance & Leicester, said: “Our survey reveals that most first-time buyers are pragmatic about the amount of money they can afford for their first home.
“With the majority choosing to look at houses below the UK national average, affordability is first and foremost in their thoughts.”
While one in four twenty-somethings choose to stay at home, a new trend is emerging with men more likely to stay at home than women, as 56 per cent of women choose to rent a place to live compared with 40 per cent of men.
Financial providers are also offering more alternatives to those struggling to get their first home. Yorkshire Building Society has launched a family offset mortgage account that allows parents to link their savings to their children’s mortgage.
In this way, parents can offer financial assistance without handing over their savings. They forfeit interest on their savings and this eases the borrower’s mortgage repayments.
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