More than half (52%) of prospective homebuyers believe the current economic climate has impacted who they plan on buying a property with, and with who they might have to share their property.
According to new research by Mortgage Advice Bureau, economic uncertainty, fuelled by high inflation and interest rates pushing rents and mortgage rates up, is currently the biggest barrier standing in the way of homeownership, as cited by two in five homebuyers (42%).
Saving for a deposit (32%), a slowdown in the housing market (27%), and being accepted for a mortgage (25%) also ranked highly as major obstacles.
Mortgage Advice Bureau’s findings were based on an online survey among 1,001 prospective homebuyers in the UK during July.
“The difficult and volatile economy has significantly changed the game for prospective buyers,” said Deputy CEO at Mortgage Advice Bureau, Ben Thompson. “For 15% of this demographic, it means they have already delayed homeownership plans.
“As high inflation levels dig deeper into people’s finances, many will be finding it incredibly difficult to stash away funds for deposits and subsequent mortgage repayments – especially those seeking to buy alone.”
For over half (52%) of prospective buyers, the study found that once they’ve found the property they plan to buy, they would consider having a lodger to help supplement their outgoings. Of this figure, 17% said they definitely plan on having a lodger, and 21% say they’d consider having one to specifically help cover the costs of household bills.
The study also suggested that almost one in five people (18%) will now need to buy with a partner, 9% with the help of a family member, and 7% are planning on buying with a friend, the findings also showed. Just one in 10 (10%) believe they will be able to buy alone.
Thompson added: “A good way to help generate some extra money to pay for bills or contribute to a mortgage is to consider getting a lodger. However, it is important to note that you should still ensure you’ll be able to meet your mortgage repayments each month and be able to go without that extra cash in the event they move out.”
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