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A new report and survey ‘Why buy new? Home Buyer intentions and opinions’ by the House Builders Federation (HBF) has shown that financial concerns dominate the thinking of prospective new home buyers, especially in the under 35s.
84% of 18-34 year olds want to own their own home
The survey, carried out by YouGov of 2,000 people throughout Britian and published to coincide with New Homes Week 2016, shows that whilst 84% of 18-34 years olds still want to own their own home, there are huge financial obstacles to realising their dreams. 73% cited the difficulty of saving for a deposit; 69% property prices; and 53% the difficulty of getting a mortgage. To compound the issue, the survey also showed that 25% of 18-34 year olds are unaware of government support for home buying such as the Help to Buy Equity Loan scheme.
Running costs are a key factor for young home buyers
And it seems that younger people are also more concerned than their elders about the costs of running a home with 67% of 18-24 year olds taking this into account when considering a house purchase compared to just 40% of 35-44 year olds.
New build homes are also more popular with the 18-24 age group due to the lower running costs (estimated at 50%). 55% of this age group would consider buying a new build home compared to just 23% of over 45s.
More than half the buyers of second-hand homes replace bathrooms or kitchens
The research also highlighted the amounts of money second hand home buyers spend on their properties with 47% of people spending over £10,000, and more than half incurring the expenditure associated with replacing bathrooms or kitchens. 13% spent of people spent over £40,000 upgrading their home. HBF estimates it costs around £45,000 to upgrade a second hand home to the standard of a new build.
Key highlights from the research include:
HBF executive chairman Stewart Baseley said:
“In the midst of a housing crisis, the prospect of getting on to the property ladder can seem like a distant possibility to many people. But there are options available to today’s young people. Due to Government schemes buying a new build home is a real possibility for people.
“New build homes have so many great benefits, from the high build quality and brand new fixtures and fittings, to the low running costs and added bonus of a 10 year warranty. But the real benefit for many first time buyers is the affordability of the whole process.
“Schemes like Help to Buy really make home ownership an option for many who it would otherwise be an impossible dream. And once in a new build, everyday living in terms of running costs, bills and not needing to spend thousands on upgrades mean people can enjoy living in their new home and not have to scrape by.
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