Almost three quarters (71%) of recent first-time buyers (FTBs) have received financial support to purchase their first home, Moneybox has revealed.

Research by the firm looked to uncover the economic divides for FTBs and provide a voice and opportunity for them, following the Government’s pledge to "recapture the dream of homeownership".

The survey found that FTBs that benefit from financial support, whether a loan or a gift, are able to buy a property twice as quickly as those who do not have this advantage, with almost half of aspiring FTBs who hope to receive financial support intending to buy their first home within the year.

Moneybox also addressed the age gaps between FTBS, pointing towards the issues that millennials are often facing when looking to buy their first home.

The research found that 61% of millennials feel older than most people buying their first home, compared to 37% of gen Zs.

Furthermore, three in five (59%) millennials worry that they have started saving too late to buy their first property, while two thirds (67%) are concerned they will be paying off their mortgage into retirement.

Head of personal finance at Moneybox, Brian Byrnes, said: "FTBs are often referred to as one homogenous group. Yet, in reality their paths to home ownership are far from uniform. Income, location, gender, family status, and access to financial help, like the ‘Bank of Mum and Dad,’ all shape FTBs’ unique experiences, and by generalising their experience we risk oversimplifying the challenges they face.

"Our research uncovered a growing number of challenges, that if left unaddressed could undercut the foundation of wealth creation in our society, and further deepen economic divides. For decades, homeownership has been viewed as a cornerstone of financial stability and one of the most effective ways to accumulate wealth. Enabling first-time buyers is not just about helping young people buy a home; it is about nurturing the future wealth creators of our society."

The research also found that with increasing numbers of the UK population choosing to remain single into later life, solo buyers are "facing a much steeper hill to climb" in order to buy their first home, compared to those buying with a partner.

Moneybox said that solo FTBs aim to save £3,000 less for their first home deposit than those buying with others, while one in 10 solo buyers took a decade to save the deposit for their first property.

Two in five (39%) solo FTBs said that it will take much longer to buy than expected, and they are a third (33%) more likely to describe the home buying process as “overwhelming”.

Byrnes added: "With a new Labour Government now in place, we have the opportunity to collectively consider how we can create short, medium and long-term solutions that meet the diverse needs of the FTB community.

"Based on our research and discussions with FTBs, we are calling for four tangible actions from the government. Firstly, the creation of a government working group to address the challenges identified from listening to the voices of FTBs. Secondly, a commitment to considering not just the long-term solutions like building more houses, but also practicable solutions for the short and medium term.

"Thirdly, we ask for ministers to commit to regularly meeting with FTBs and connecting with those voices that need to be heard on this topic. And finally, we are calling for the Government to commit to future proofing the LISA in order to help FTBs save for that all-important deposit."

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