Only 5 per cent of potential first time buyers think they’ll get on the property ladder this year according to Abbey.
Despite 30 per cent of potential FTBs wanting to buy this year but only 5 per cent are confident they’ll be able to do so compared with 18 per cent three months ago.
However, 45 per cent think the time is right to make an offer lower than the asking price and of these people, more than three quarters would consider doing this.
Thirty seven per cent of first-time buyers say there are not enough properties on the market in their price range, but 29 per cent are simply waiting for prices to come down.
FTBs are less afraid of offering a lower amount than the asking price with 45 per cent thinking the time is right to do this. But 43 per cent surveyed would be concerned they’d lose the property and 12 per cent think it’s not right and they would feel bad about it. Also 10 per cent weren’t even aware they could put in a lower offer than the asking price.
The price first-time buyers are prepared to pay for their first home:
Price first-time buyers are prepared to pay
Up to 100,000 – 18 per cent
100,000 – 125,000 – 17 per cent
126,000 – 150,000 – 15 per cent
151,000 – 175,000 – 11 per cent
176,000 – 200,000 – 9 per cent
200,000 – 250,000 – 7 per cent
Over 250,000 – 14 per cent
Abbey chief economist Barry Naisbitt says: “In the lead-up to the most popular season for house buying, it’s worrying that there has been such a drop in confidence. Our report shows just how tough it is to get on to the property ladder, but we hope that the recent increase in the stamp duty threshold will have a positive effect on first-time buyers confidence and affordability over the next quarter.”