It may be one of life’s milestones, but new research from Clydesdale and Yorkshire Banks has revealed that more than half of the UK’s first time buyers now try before they buy when it comes to owning their first home.
The annual survey found that more than half (54%) of the nation’s first time buyers rent before they take the house buying plunge. A further 35% stay with family and 6% rent but move back to the family home to save for a deposit. The same survey last year revealed that 67% of first time buyers in the UK were waiting longer than planned to buy their first home with more than half of those surveyed revealing it had taken up to 3 years longer than anticipated.
There is a clear financial benefit with almost two fifths (39%) of those at home claiming to live rent free. Some 61% pay rent every month and a further 21% make a contribution through helping at home, paying bills or buying food for the household. Interestingly 80% of Scots living at home pay rent compared to just 46% of those in London.
|Region||% Who stay at home and pay rent|
The majority (56%) of first time buyers said they feel pressure to buy their own home and this is felt most keenly amongst those renting a property (62%). There were stark regional variances with almost two thirds (65%) of first time buyers in London admitting to pressure to take their first step onto the property ladder. This compared to just 37% in the North East.
Steve Fletcher, Head of Clydesdale and Yorkshire Banks Retail Network, said: ” We know that first time buyers face a number of pressures and challenges and are focused on providing support throughout the process from helping to save for a deposit to finding the right mortgage to suit different needs and budgets. Clydesdale and Yorkshire Banks are offering first time buyer mortgages with a 5% deposit and we are proud that we were one of only a handful of lenders who continued to support this market throughout the economic downturn.”