The analysis found that it has become popular among potential first-time buyers to stick with properties that best align with their long-term lifestyle goals rather than simply getting on the property ladder as quickly as possible.
As such, they prioritize space, energy efficiency and location when searching for a new home. MAB said many of them were willing to delay the purchasing process until they could secure a property that suited their future plans.
Survey respondents were evenly split between those planning to buy an apartment and those looking for a house. Only about 22% in each of these categories wanted new construction.
The results also reveal an almost even split in what buyers expect from their first property, with 50% expecting to buy an apartment and 48% planning to buy a house.
For those searching for a home, space was their priority, with 51% admitting they wanted a place for a growing family.
Among those who considered apartments, the most important factor was location, resulting in a preference for access to specific communities, schools or urban amenities.
MAB said the findings suggest that many aspiring buyers are increasingly viewing their first property as a long-term lifestyle decision rather than a short-term stepping stone.
Rachel Geddes, Director of Strategic Lender Relations at Mortgage Advice Bureau, said: “First-time buyers are spending longer in savings than previous generations, so many are becoming more intentional about the type of property they choose and the lifestyle they want their first home to support.
“Although saving for a deposit remains one of the biggest challenges, many buyers are unaware of the schemes, mortgage products and affordability options that may already be available to help them achieve their homeownership goals.
“Speaking to a mortgage broker early on – even if you’re just starting to think about buying your first home – can help buyers better understand what they can realistically afford, identify lenders best suited to their circumstances, and perhaps get on the property ladder sooner than they expected.”
There are no mortgages on deposits
There are many options for ‘no deposit’ mortgages for first time buyers who may be struggling to save up for a deposit. MAB has highlighted two options as part of its research.
Barkley’s starting point
Barclays Springboard Mortgage allows first-time buyers to borrow up to 100% of their property’s value by linking their mortgage to a friend or family member’s savings.
Victoria Thompson, head of strategic partnerships at Barclays, said: “This type of mortgage can be a valuable option for potential homeowners who may struggle to secure a traditional mortgage due to not having sufficient deposits.
“It also enables family members to help in a significant way without permanently giving up their savings. Where appropriate, responsible and with expert advice, it can provide a practical and effective route to home ownership.”
Skipton Building Society Mortgage Register
Track Record Mortgage is designed for tenants who have made high rent payments on time, and offers a loan for 100% of the property value.
Those with a strong history of rent payments are eligible and no deposit is required.
Aidan Walker, Senior National Accounts and Head of First-Time Buyer at Skipton Building Society, said: “Supporting people onto the housing ladder is central to Skipton Building Society’s purpose, and with renters facing the dual challenge of rising rental costs and saving to buy a home, registered mortgages are one of many potential solutions that focus on a buyer’s history of rent payments without the need for a traditional deposit.”
