Semi-detached properties are in the crosshairs of first-time buyers, as a fifth (22%) of homeowners are buying properties with more bedrooms than they need.
Over a third (33.5%) bought semi-detached properties in August, while a similar proportion of 18-27-year-olds (33%) bought a ‘forever home’ so that they wouldn’t have to move again, Barclays research shows.
A fifth of renters believe homeownership is achievable within five years – the highest level since February.
Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “Our data shows that first-time buyers are not considering property merely to get a ‘foot on the ladder’ but for the long term.
“Whether it’s to create space for a growing family, or to invest for the future, it’s encouraging to see young people feel slightly more confident in taking this significant step.
“It’s clear that buyers are still cost-conscious as 30+ year mortgage terms become more popular – this option helps consumers reduce their payments by stretching their borrowing over a longer period of time.”
Two in five Barclays first-time buyer customers chose mortgages allowing them to complete their repayments over a 30+ year term, which serves to keep monthly costs at an achievable level.
Julien Lafargue, chief market strategist at Barclays Private Bank and Wealth Management, said: “Despite facing challenges, the UK economy continues to demonstrate resilience. Our data shows that a period of caution is emerging, with over half of businesses delaying investment decisions until after the Autumn Budget, and consumers are also taking a ‘wait and see’ approach as they anticipate any changes that may lie ahead.
“However, looking beyond the immediate horizon, the combination of economic factors such as moderating inflation, and a more accommodative stance from the Bank of England should provide a supportive backdrop for the housing market. These considerations may help sustain demand and improve affordability, even as broader economic uncertainty lingers.”
