Transactions by first-time buyers have remained steady in the past year, accounting for 29% of purchases, compared to 31% over the past 10 years, an e.surv survey has found.

Analysis of data from HMRC and UK Finance revealed that with less support from the bank of mum and dad, buyers are considering financial factors more carefully.

e.surv’s survey revealed that in London, almost one in four (22%) respondents said the bank of mum and dad was a “crucial source” of financial support to purchase a home.

However, a significant portion of buyers stated that they are considering affordable home ownership schemes (18%), extended mortgage terms (16%) and less expensive neighbourhoods (16%) to make homeownership a reality.

Furthermore, as a result of the cost of living crisis, the data has shown that more people are looking to downsize, with a 10.5% increase in the number of people purchasing smaller properties.

Respondents to e.surv’s survey have reported challenges in the private rental sector from both a tenant and investor perspective.

Rising mortgage rates, strong wage growth, a rental property shortage and shifting housing market affordability dynamics have all been cited as reasons for pressure on the rental market.

e.surv said that this trend in the rental market is especially noticeable in Scotland, where the introduction of the rent cap, designed to protect tenants as living costs increased, may have contributed to a decrease in the availability of rental properties.

This has reduced supply and in turn, led to an increase in rents, with e.surv estimating a 12% rise in rents, as landlords push rents on new tenancies to offset the limitations imposed by the rent cap.

Looking to 2024, the firm said: "The ongoing supply-demand imbalance in the rental market is unlikely to dissipate soon, leading to continued rental price growth, albeit slower than the double-digit increases witnessed throughout much of 2023.

"The UK housing market is showing signs of resilience despite gloomy forecasts made a year ago. According to recent Bank of England data, mortgage approvals have been stronger than expected, suggesting increased activity in the market. This indicates that there is still a strong demand for housing in the UK, even as economic conditions remain uncertain."

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