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Guest blog: Real solutions for real problems - let's keep innovating to help first-time buyers

Jennifer Lloyd, Head of Mortgage Products and Proposition at Skipton Building Society, outlines the Society's goal to help first-time buyers make informed decisions on whether the dream of home ownership can become a reality.

Jennifer Lloyd, Skipton Building SocietyThis article was first published in Society Matters magazine.

Supporting first-time buyers to achieve home ownership is a vital part of a functioning housing market. Regulators, government and lenders need to work together to ensure that this support is available, both now and in the future.

For many, putting their own key, into their very own front door, of the home they own is a dream – in fact, research we’ve carried out at Skipton Building Society* confirms that 91% of us believe it’s important to own a home one day.

Unfortunately, getting on the property ladder is a lot easier said than done – for a whole host of reasons. The average cost of a home has increased a whopping 60% in the last decade, according to official figures from the Office for National Statistics (ONS), and with the price of rent being so high, many are struggling to put money away for a deposit – Zoopla reports the average rent in the UK is £1,223 per month^.

57% of people say their outgoings have increased over the last 12 months, with around nine out of ten people recognising it’s become harder to save for a home*.

Hotel 'Mum and Dad'

In a bid to try and make saving for a first home that little bit easier, our research shows that some aspiring buyers are even moving back in with parents to cut costs. Four in ten people say they would consider moving back in with their parents, with just over three quarters agreeing it would help them to save for a home much quicker*. 

86% believe they would only need to pay around £250 (on average) a month to live at home with their parents*

And if they didn’t have to pay rent, they believe they would be able to save around £800 (on average) a month towards a deposit*.

For those fortunate and willing to make this move, it could be an important first step in helping them to boost their savings. But for many - over half of those we surveyed in fact - this simply isn’t an option. That’s why it’s imperative that lenders continue to innovate and bring real solutions to solve a very real issue.  

There’s still hope for first-time buyers

For budding first-time buyers, I know it feels like options are limited right now. Helping people to take their first step onto the ladder is a key focus for many of us within the sector and I’m encouraged by the innovation I’m seeing in this space, but I know there is more to do.

At Skipton, our goal is to help first-time buyers make informed decisions on whether the dream of home ownership can become a reality, and we’ve got a range of options, from our Track Record Zero Deposit Mortgage aimed at renters stuck in the rental cycle struggling to save a deposit, to Income Booster which gives buyers the option to boost their affordability with support from family or friends – we, along with our fellow Building Societies are here to make home ownership a reality for more. 

Explore the affordability of buying and living in a home across Great Britian using Skipton Group’s new interactive affordability index tool Skipton Group Home Affordability Index - Skipton Group – Whether you are renting, saving up-to buy your first home or looking to move up the ladder, you can use Skipton’s tool to find out where you might be able to afford to live.

*Survey based on 2,000 participants carried out in February 2024.
^ as of April 2024
 

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