Getting a mortgage and house prices biggest concernMany young people not aware help to buy is availableYoung people much more aware of home running costsYoung people much more likely to consider buying a new build1/3 of second hand buyers spend £10-£40k upgradingOver 1/3 of people have never visited a new build home
Financial worries dominate the thinking of today’s generation of prospective home buyers a new report and survey published today shows. It also highlights the change in attitudes to home buying between young and old.
The survey shows that whilst 84% of 18-34 years olds still want to own their own home, there are huge financial obstacles to realising their dreams. 73 per cent cited the difficulty of saving for a deposit; 69 per cent property prices; and 53 per cent the difficulty of getting a mortgage.
To make matters worse, one in four 18 – 34 year olds are totally unaware of any government support available to them, such as the 5% deposit ‘Help to Buy equity loan’ scheme or the Help to Buy ISA aimed at helping young people save for a deposit.
The survey also shows that younger people today are more concerned than their elders about the running costs of homes with 67% of 18-24 year olds taking this into account when considering whether to buy compared to 40% of 35-44 year olds. Younger people are also much more likely to consider buying a new build, which are up to 50% cheaper to run than some second hand homes - with 55% saying it is likely they would consider buying a new build compared to just 23% of over 45s.
It also identifies the huge amounts of money second hand homebuyers spend on their properties with 47% of people spending over £10,000, and more than half incurring the expenditure associated with replacing bathrooms or kitchens. 13% spent of people spent over £40,000 upgrading their home. HBF estimates it costs around £45,000 to upgrade a second hand home to the standard of a new build.
The findings are unveiled in Why buy new? Home Buyers intentions and opinions’ a report by the Home Builders Federation (HBF) following a YouGov survey of over 2000 people.
The research was published to launch New Homes Week 2016, an industry-backed initiative aimed at addressing some of the misconceptions about new build homes. With 34% of people polled saying they have never visited a new build or a show home and a further 18% saying they hadn’t for at least 10 years, the industry faces a huge challenge engaging with the public to explain the many benefits of today’s modern, high quality new build homes.
Highlights from the research include:
84% of 18 – 34 year olds that don’t already own their own home aspire to do so.When buying a new home, the most important factors house hunters consider are price (80%) and location (80%). However a greater proportion of younger house hunters – 67% of 18 – 24 year olds – take into consideration the running costs of a property, compared to 55% across all age groups.The main obstacles for first time buyers trying to get on to the property ladder are saving for a deposit (73%), property prices (69%) and getting a mortgage (53%). Similarly, the main put-offs to buying a home (for the first time or otherwise) are the deposit (72%) and needing to get a mortgage (60%).When moving home, the majority of people have to make improvements to both their kitchen (51%) and bathrooms (52%), with 70% saying that they also have to redecorate.Only 1% of home owners said that they didn’t have to spend money to make improvements when moving house, with 21% saying they spend £1,000 - £5,000 and 13% admitting to spending more than £40,000.55% of 18-24 years olds said they would consider buying a new build home with just 28% saying it was not at all likely.Overall 33% of people surveyed said they would consider buying a new build home with 46% saying it was unlikely.34% of people have never visited a new build home or a show home; whilst a further 27% hadn’t done so for 5 years or more.
HBF executive chairman Stewart Baseley said: “In the midst of a housing crisis, the prospect of getting on to the property ladder can seem like a distant possibility to many people. But there are options available to today’s young people. Due to Government schemes buying a new build home is a real possibility for people.
“New build homes have so many great benefits, from the high build quality and brand new fixtures and fittings, to the low running costs and added bonus of a 10 year warranty. But the real benefit for many first time buyers is the affordability of the whole process.
“Schemes like Help to Buy really make home ownership an option for many who it would otherwise be an impossible dream. And once in a new build, everyday living in terms of running costs, bills and not needing to spend thousands on upgrades mean people can enjoy living in their new home and not have to scrape by.
“We really hope that New Homes Week 2016 will help to promote new build homes to a brand new audience and open people’s eyes to the many reasons why they should buy new. We are urging people not to be put off by dated misconceptions, but to go and actually visit a new build home and see what is actually available.”
New Homes Week 2016 is running from Monday 16th May until Sunday 22nd May. To find out more, go to www.new-homes.co.uk/new-homes-week, or search for the hashtag #NHW16 across social media. You can also check the @newdashhomes Twitter feed, or go on the New-Homes Facebook page (@newdashHomes).
For media enquiries, or to arrange an interview, please contact Steve Turner on 020 7960 1606 or 07919 307760. Steve.turner@hbf.co.uk
Notes to editors
The Home Builders Federation (HBF) is the representative body of the home building industry in England and Wales. The HBF’s member firms account for some 80% of all new homes built in England and Wales in any one year, and include companies of all sizes, ranging from multi-national, household names through regionally based businesses to small local companies: www.hbf.co.ukAll figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,017 adults. Fieldwork was undertaken between 7th and 8th April 2016. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
