First time buyers settle for less

First time buyers are now making more sacrifices to get on the property ladder than their counterparts 30 years ago, according to a new report by GE Money Home Lending & The Future Foundation.

The report shows that 23% of first time buyers in 2007 were willing to buy a home with less outside space than they would have liked, compared to just 6% of their counterparts in 1977. Compromises have also been made in recent years on other aspects of the home such as garages, living space and the type of property, with more first time buyers now settling for an apartment over a house for their first home.

Gerry Bell, Head of Mortgage Marketing at GE Money Home Lending, commented: “The fact that more and more first time buyers are compromising their desires in a first home in order to get on the property ladder can largely be credited to economic factors such as rising house prices, however many are also delaying their purchase of a first home for lifestyle choices. Faced with other factors such as student debts and increasing interest rates, some are finding that they are making compromises in the type of home they wish to purchase, such as size and location, in order to fulfil their home buying aspirations.

“It is clear that many compromises are being made by first time buyers to get on the property ladder in terms of space and environment. What we must ensure is that first time buyers are not making sacrifices in terms of affordability when buying their first home and that they are offered affordable products tailored to their needs.”