Abbey FTB review reveals concerns
However, the research suggested many buyers are being held back because of low salaries and existing debts.
Abbey confirmed a low salary was the biggest obstacle to saving a deposit for a property, with 15 per cent admitting personal debt was hindering their ability to save. 9 per cent of respondents also admitted to a lack of savings discipline that stopped them securing a deposit for a property, while 12 per cent claimed their failure to save for a deposit was due to high rental expenses.
Barry Nesbitt, chief economist at Abbey, said: “The proportion of FTBs that feel they need to buy now has doubled since last year. Our research shows that over 90 per cent of first-time buyers intend to save up for a deposit, but they are being held back by a limited disposable income and other financial commitments. Unless they are sure their personal debt is manageable, first-time buyers are not even starting from square one.”
Ken Sives, partner at Sives Financial Services, agreed FTB circumstances made saving for a deposit hard. He said: “The fact investors tend to snap-up properties in the same price bracket to rent out is not easing the situation and once these are bought by investors they are effectively removed from the market, creating further problems. You would rather see the first-time buyer get a house than an investor, and perhaps the answer lies in co-buying. This can have its pitfalls but could be the only way forward for young people.”