A new survey has found that first-time buyers appear to be more confident about the property market in the UK than at any time in recent years. With a greater number of higher loan-to-value (LTV) mortgages available and an increasing expectation that house prices will start to rise in the next year, one in eight first-time buyers questioned were hoping to buy in 2012.
The survey also found that people looking to get on the property ladder are more aware of the need to save a larger deposit. And, almost half of those quizzed said that they were looking to save the deposit for their first home themselves.
The research by the Post Office found that one in eight first-time buyers are hoping to get onto the property ladder in the next five years. Of these people, 14% are hoping to buy in 2012 with a quarter planning to purchase in 2013.
Mike Cook, Head of Mortgages at the Post Office, says: "First-time buyers are the life blood of the property market and our research shows that challenging stories about first-time buyers and wider economic issues have not dampened aspirations to get on the housing ladder."
The survey also found that first-time buyers expect to have to save an average deposit of 16%, even considering the increasing number of high LTV deals available. Figures from Moneyfacts in May 2011 showed that there were 229 mortgage deals available to people with a 10% deposit, up by 41% from the same time the previous year. 48 lenders offered 90% deals in May 2011, according to figures published in the Daily Mail.
Mr Cook adds: "It is also interesting to see that despite the resurgence of 10% deposit mortgages recently, the average first-time buyer is aiming for the cheaper rates available at 15% or 20% deposit - even if it takes that bit longer to save."
The Post Office research also considered how first-time buyers were intending to save up their deposit. Some 45% said they planned to save the cash themselves, while a further 28% were saving up with the help of a partner. Just 16% of those questioned said that they planned to use the government's much publicised FirstBuy scheme to help them buy their first home.