Three-quarters of aspiring homeowners say the pandemic and its property boom have damaged their chances of buying
- 76% of buyers surveyed said the pandemic has negatively impacted their plans
- 21% of 18 to 24-years old said they won’t be able to afford a deposit without help
- 47% said that the property ladder is no longer accessible to young people
Three-quarters of those wanting to get onto the property ladder in the next five years believe that the pandemic and its property boom has damaged their prospects of doing so, new research has revealed.
A total of 76 per cent of 2,000 potential first-time buyers surveyed said the Covid pandemic and the rapid rise in house prices seen during it has had an negative impact on their plans
The research by Latimer – the development arm of Clarion Housing Group – also suggested that a purchase or move had been delayed by at least three years for a fifth of potential buyers.
A total of 76 per cent of 2,000 potential buyers surveyed said the global pandemic has had an negative impact on their plans
In addition, only 21 per cent of those aged between 18 and 24-years old believe that they will ever be able to afford a deposit without help from the Bank of Mum and Dad.
It is hardly surprising, therefore, that the same research found that 47 per cent say that the housing ladder is no longer accessible to young people.
The property market temporarily shut down for around two months at the start of the pandemic in 2020, leading to widespread predictions of house prices falling
Fast forward towards the end of 2021 and the past 12 months have seen a boom in property purchases, a stamp duty holiday that has now ended, and house prices soar amid a shortage of homes to buy.
Nationwide Building Society says the average house price has risen by around 10 per cent during the past year to £250,011.
Latimer said that the rise in house prices means first-time buyers are having to find larger deposits to get onto the property ladder.
Richard Cook, of Clarion Housing Group, said: ‘There is now intense demand for new homes, but as prices escalate, some first-time buyers are even further away from the dream of outright ownership.
‘We cannot have a situation where so many young people feel that home ownership is out of reach for them.’
Latimer’s study also explored what buyers are looking for in their homes. Outdoor space ranked top of nearly half – at 46 per cent – of buyers’ property wish lists while almost a quarter – 24 per cent – said living in a city is less important to them now.
Despite the growing trend of renovations, 44 per cent of people want to move into a home that is ready to live in, with 28 per cent saying they simply don’t have the skills to renovate a property themselves.
The research claimed 21 per cent of 18 to 24-years old say they won’t be able to afford a deposit without the help of the Bank of Mum and Dad
The lack of supply continued to push up prices last month, according to the Royal Institution of Chartered Surveyors.
In claimed that estate agents now have only 37 properties on their books on average, down from around 42 in March.
A fifth of contributors to its survey reported a fall in the number of new properties being listed for sale.
A quarter said price increases would continue in the next three months, while 69 per cent claimed value would continue to increase for the next year.