The current political climate is acting as a primary deterrent for those in a strong financial position and ready to begin their climb on the property ladder, research from OneFamily has revealed.
The financial services provider found that more than half (55%) of aspiring first-time buyers (FTBs) with a deposit at the ready are holding off on buying as a result of Brexit, the equivalent of at least 136,000 people across the UK.
Three quarters of those holding off on account of Brexit stated that the economic future is simply too uncertain to purchase a property at the moment.
According to OneFamily, this uncertainty is a likely cause for the slowdown in the UK’s property market, which is currently at its weakest in six years, leaving 65% of FTBs that are ready to buy feeling as though doing so before Brexit would be a poor financial decision.
However, despite a large majority of FTBs delaying, one in five admit they will purchase a property before Brexit, with common reasons being that they have already found their ideal property and therefore do not mind losing money on it (29%), while 22% believe they have waited long enough to purchase. Just 15% of aspiring FTBs said they do not think Brexit will affect property prices.
While many in a financial position to buy are waiting until the uncertainty settles, those that have not quite reached their goal are hoping that Brexit will bring prices down. Over half (57%) of FTBs have said that high property prices are preventing them from buying a home, but if the market were to dip post-Brexit their situation would improve.
One in five (19%) of those who are currently saving to buy their first property say that they would be able to buy if house prices dropped by 5 per cent, with a further 30 per cent able to buy if they dropped by 10 per cent.
Commenting, OneFamily managing director of Lifetime ISAs Nici Audhlam-Gardiner: “At times of uncertainty it’s always hard to know what to do – do you wait and see, or carry on regardless? For many, market fluctuations as a result of Brexit could give them a golden opportunity to get on the housing ladder.”
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