Three in 10 first-time buyers pause plans on property purchase

Three in ten (30%) prospective first-time buyers have paused plans to purchase their first property as a result of COVID-19, a new study has revealed.

Findings from financial comparison platform, NerdWallet, found that nearly a quarter (24%) of respondents still expect to purchase their first home within the next year.

NerdWallet commissioned an independent survey of over 600 UK adults who do not currently own a property but aspire to, and also found that 9% of aspiring homeowners had tried unsuccessfully to purchase a property during the stamp duty holiday. A further 5% have been turned down for a mortgage.

However, the research suggested that the vast majority (70%) of hopeful homebuyers remain confident they will achieve their ambitions of home ownership within the next 10 years. 

Furthermore, NerdWallet also revealed that two fifths (40%) of would-be homeowners had already taken steps to improve their credit score in advance of applying for a mortgage.

“COVID-19 has created challenging conditions for the UK mortgage market,” commented NerdWallet director of operations, John Ellmore.

“The resulting economic volatility has led some mortgage providers to tighten their lending criteria and, as such, some first-time homebuyers may find securing a mortgage more challenging than they may otherwise have done. 

“Positively, however, Britons appear to be taking steps to prepare themselves for mortgage applications – and this should be a sign of better things to come. From taking advantage of government-backed 95% mortgages, to improving credit ratings, our research suggests that prospective buyers are being proactive in their efforts to make homeownership a reality.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.