• Survey for HSBC UK reveals nearly 7 in 10 (68%) first-time buyers say they’re now more likely to be able to buy their dream home than they were at the start of 2023.
  • Most likely reason for buying is that it’s cheaper than renting, with only one in nine (11%) seeing property as an investment.
  • Nearly three-quarters (73%) of all Brits looking for a new home say they’re in the market for a doer-upper, a property that needs work, to help keep costs down.

First-time buyers in the UK are now more confident of getting on the property ladder than at the start of 2023, according to research conducted on behalf of HSBC UK.

The findings coincide with numerous positive changes in the UK housing market, including reductions in mortgage rates and house prices stabilising,  despite the continued challenges faced by many in the current economic environment.

The survey reveals the reasons people want to own their own home and how they are saving money to afford a mortgage.

Nearly seven in ten (68%) people hoping to buy their first home in the next 12 months say they’re more confident about getting the keys to their dream property than they were at the beginning of the year.

And when it comes to the overall market, nearly three-quarters of homebuyers (73%) say they’re looking for a house that needs work to keep the initial costs down.

A variety of reasons were highlighted for wanting to buy, with first-time buyers stating it is cheaper than renting (21%), closely followed by wanting their independence (20%), financial security (17%) and providing for their family (14%).

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Only one in nine (11%) said it was because they regarded their first home as an investment.

Andrew Matson, Head of Mortgages at HSBC UK said: “It’s encouraging to see more optimism amongst first time buyers. The first half of this year has been challenging, but the shift in attitudes is reassuring and highlights the resilience of the housing market.

“At HSBC UK, we have been supporting our customers through the recent economic challenges in a number of ways, this includes providing support under the Mortgage Charter. We have also developed an online guide for first time buyers and I would encourage anyone looking to purchase their first home to use the guide.

“While we don’t have a crystal ball to see what the future holds, it is pleasing to see the positive sentiment running throughout our research  and we will continue to lean in to help support our customers.”

The survey also found that in some major cities such as London, Manchester and Newcastle “independence” came out on top for reasons to buy a property, while in Liverpool it was “financial security”.

Meanwhile, those in Wales (64%) and Yorkshire and the Humber (63%) were found to be the most confident about affording a mortgage deposit now or within the next 12 months. Those in East Midlands (52%), the North East (53%) and Northern Ireland (53%) were the least confident.

Around seven in ten (68%) people were found to use a savings account to put money away for a deposit, with just under one in four (24%) using an ISA.

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How consumers find a mortgage provider was clear from the survey, with using a broker or financial adviser the most popular way to get information about the market, followed by the websites of mortgage providers themselves.

Top 5 sources for mortgage information

–           Broker/adviser (41%)

–           Online – mortgage provider website (30%)

–           Online – comparison sites (28%)

–           Online – money saving websites (25%)

–           Friends/family (22%)

And when it comes to picking a mortgage provider, cost is the number one driver, but it is closely followed by getting a recommendation from an expert and choosing a brand they trust.

Top 5 reasons for choosing a mortgage provider

–           Most cost-effective mortgage option (32%)

–           Broker or adviser recommendation (31%)

–           A brand I trust (26%)

–           Existing customer wanting finances in one place (21%)

–           Recommendation from family or friend (11%)

HSBC UK is supporting its customers as much as possible with their financial challenges and is offering support in numerous ways. This includes increasing the number of people available on the financial support teams and proactively contacting customers about ways to help, as well as giving customers appropriate time and breathing space to return to financial health, agreeing affordable solutions, or restructuring credit commitments, tailored to suit their circumstances.

HSBC UK also provides free financial health checks and webinars for customers and non-customers, with an HSBC UK financial wellbeing consultant. If a customer is experiencing financial difficulty, we encourage them to reach out to us as soon as possible.