First-time buyers face a growing number of challenges that “risk deepening economic divides” and could “undercut the very foundation of wealth creation in our society”, research from Moneybox has suggested.
The research, which surveyed over 4,000 first-time buyers, outlined several challenges faced by FTBs, with some particularly affecting millennials.
It stated that the millennial generation is facing a number of unique challenges to getting their foot on the property ladder.
They are most likely to worry that they are missing out with many having delayed key life events, including having a family and saving for retirement, in order to prioritise buying a home.
Moneybox head of personal finance, Brian Byrnes, said: “First-time buyers are often referred to as one homogenous group yet, in reality, their paths to home-ownership are far from uniform.
“Our research uncovered a growing number of challenges, that if left unaddressed could undercut the foundation of wealth creation in our society, and further deepen economic divides.
“For decades, homeownership has been viewed as a cornerstone of financial stability and one of the most effective ways to accumulate wealth.
“Enabling first-time buyers is not just about helping younger people buy a home; it is about nurturing the future wealth creators of our society.
“With a new Labour government in place, we have the opportunity to collectively consider how we can create short, medium and long-term solutions that meet the diverse needs of the FTB community.”
The research additionally warned on the impact of financial support, cautioning that, without mitigating action, “our society risks becoming increasingly polarised between those who benefit from financial support to buy their home and those who do not”.
Moneybox detailed that FTBs that benefit from financial support are able to buy twice as quickly as those who do not have the advantage.
The research also found that, with increasing numbers of the UK population choosing to remain single into later life, solo buyers are facing a much steeper hill to climb in order to buy their first home than those buying with a partner.
“It is clear that solo buyers are in need of greater support to help them prepare for and navigate the homebuying journey and to ensure they are not financially marginalised,” it added.
tom.dunstan@ft.com
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