The dream of owning a home is alive and well, especially for first-time buyers! A new survey reveals that almost half (45%) of recent first-time buyers used government schemes to make that dream a reality. This comes as no surprise, with the rising cost of housing and the ever-present question of affordability looming large.
But what schemes are these aspiring homeowners utilising? The survey reveals that the First Homes scheme takes the crown, with a whopping 36% of respondents using it to snag a property at a 30-50% discount, however be aware it comes with its own set of limitations on property types and eligibility criteria.
The Lifetime ISA, another popular choice (29%), offers a government bonus on top of your savings, making it a valuable tool for building a deposit. However, it’s important to note the withdrawal restrictions and potential tax implications before diving in.
But it’s not all about government handouts. The survey also highlights the crucial role of parental support in helping first-time buyers onto the property ladder. A staggering 34% received help from their parents, with 24% getting a loan for the deposit and 10% receiving a gift. This parental support, while not an option for everyone, undoubtedly plays a significant role in boosting the buying power of many first-timers.
These findings highlight the importance of financial education for aspiring homeowners. Understanding the various costs associated with buying a property, along with the pros and cons of different government schemes and financial support options, can empower first-time buyers to make informed decisions and navigate the complex process of securing their dream home, which is why using a broker when making such a life changing decision is vital to get the right deal.
We’ll help you do your research, understand the costs involved, and explore the available options to make the journey to homeownership a smooth and successful one.
Annabelle Bezant, January 2024
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