First time buyers are becoming more optimistic about the future, with some hoping to make their first property purchase in the next five years.
Research by the Post Office has revealed that, despite challenging economic times, first time buyers are optimistic about the housing market.
The research found that an optimistic one in eight Brits is hoping to buy their first home in the next five years.
On top of this, almost a quarter of first time buyers are hoping to make their first property purchase next year.
“First time buyers are the life blood of the property market and our research shows that challenging stories about first time buyers and wider economic issues have not dampened aspirations to get on the housing ladder,” said Mike Cook, Head of Mortgages at Post Office.
“It is also interesting to see that despite the resurgence of 10% deposit mortgages recently, the average first time buyer is aiming for the cheaper rates available at 15% or 20% deposit – even if it takes that bit longer to save.”
The research found that first time buyers are expecting to raise a deposit of an average of 16%, with 45% confident they can fund the deposit by themselves.
“With the end of stamp duty exemption for homes costing below £250,000, first time buyers will now have to find the money for stamp duty as well as their deposit,” said Mr Cook.
“It appears that for the majority of would-be buyers the good old savings account comes to the rescue with the rest receiving a helping hand from family and the government.”