More than half of aspiring homebuyers in the UK doubt they will ever be able to purchase a property, according to research from the HomeOwners Alliance.
The annual HomeOwner Survey found that while 73% of non-homeowners want to own their home, 52% of those with ownership aspirations believe they will never achieve this goal.
First-time buyer prospects appear particularly pessimistic about market conditions. The research found that 51% of aspiring first-time buyers believe now is a bad time to purchase, compared with 35% of British adults overall.
Financial barriers to entry
The survey identified financial factors as the primary obstacles preventing market entry and mobility. Three quarters of respondents said improvements in mortgage rates, deposit requirements and stamp duty would be necessary to facilitate property transactions.
Lower mortgage rates would encourage 42% of homeowners to move, rising to 50% among mortgage holders. The research follows recent movements in mortgage rates, which have shown some signs of decline. Additionally, 36% of respondents pointed to lower stamp duty as a factor that would enable them to move, while 31% identified reduced deposit requirements.
Paula Higgins, chief executive of the HomeOwners Alliance, said: “It is deeply concerning that more than half of aspiring homeowners believe they will never get onto the ladder. Some face very real affordability barriers, but others may be counting themselves out because of outdated assumptions about deposits, borrowing limits or their eligibility for a mortgage.”
Process reforms needed
Beyond cost considerations, 37% of homeowners indicated that reforms to the buying and selling process would facilitate property transactions. One in four respondents want transactions to become legally binding earlier to reduce fall-throughs, while 20% expressed a preference for a quicker, more digital process.
The research also highlighted broader affordability challenges affecting the housing market, particularly among older demographics.
Housing stock concerns
A shortage of suitable housing options is restricting market mobility, particularly for older homeowners. Among homeowners aged over 55, 32% said more appropriate homes, including bungalows and other later-life housing, would facilitate a move, compared with 27% of homeowners overall.
The findings suggest that misunderstandings about mortgage requirements may be compounding confidence issues. The HomeOwners Alliance noted that some buyers incorrectly believe large deposits are necessary or that they must wait until finding a property before obtaining a decision in principle.
The research indicates that both structural market factors and informational barriers are contributing to reduced confidence among prospective homebuyers, with implications for transaction volumes and market liquidity in the coming months.
