A third of first-time buyers are purchasing semi-detached properties with the intention of staying put in ‘forever homes’, according to research from Barclays.
Mortgage data from the high street lender reveals semi-detached properties account for 33.5% of first-time buyer purchases, with 33% of buyers aged between 18 and 27 saying they bought a ‘forever home’ so they wouldn’t have to move. A slightly lower number (27%) of all recent buyers said they intend to stay in their new home for at least 10 years.
Homes with three bedrooms are the most popular choice across all age groups, according to Barclays’ data, making up 46.4% of purchases in August. Homeowners aged 28 to 43 are most likely to prioritise extra space, with 22% buying a property with more bedrooms than they currently need to avoid upsizing later.
Borrowers are also opting for longer-term mortgages, with 41% of first-time buyers choosing to repay their loans over 30 years or more and 37% of mortgage holders saying they preferred 30-40 year terms due to lower monthly repayments.
‘Our data shows that first-time buyers are not considering property merely to get a foot on the ladder but for the long term’, said Jatin Patel, head of mortgages, savings and insurance at Barclays.
“Whether it’s to create space for a growing family, or to invest for the future, it’s encouraging to see young people feel slightly more confident in taking this significant step.”
Mary-Lou Press, president of NAEA Propertymark, said the data is encouraging and suggests a growing optimism amongst first-time buyers. She added:
“This shift also suggests that more buyers are becoming aware of the financial realities they face, such as the likelihood of longer mortgage terms to make repayments more manageable. Alongside this, mortgage products have improved year-on-year and have adapted to the slow tapering of interest rates, which are the lowest they have been in two years.”
Barclays’ research also reflects an increasing number of renters believe home ownership is achievable: 22% of those asked said they expect to buy within five years, up from 16% in July and the highest level since February. However, almost half (47%) believe high house prices remain a barrier to buying a home.
Despite ongoing affordability challenges, chief market strategist at Barclays Private Bank and Wealth Management Julien Lafargue said the UK economy continues to demonstrate resilience – which is good news for the housing market.
He added:
“Our data shows that a period of caution is emerging, with over half of businesses delaying investment decisions until after the Autumn Budget, and consumers are also taking a ‘wait and see’ approach as they anticipate any changes that may lie ahead.
“However, looking beyond the immediate horizon, the combination of economic factors such as moderating inflation, and a more accommodative stance from the Bank of England should provide a supportive backdrop for the housing market. These considerations may help sustain demand and improve affordability, even as broader economic uncertainty lingers.”
