First time house buyers are no longer that young
Written by JDPGlobal | Thursday, 30 June 2005
Research conducted on first time buyers in the housing market has proved that they will never account for 50% of property sales again as people delay their first house purchase until they are in their 30s. In fact, it has come down dramatically from the historical mark of 50% to a meagre 28%, with an average age of 34.
More than affordability, researchers believe it is a cultural shift that is responsible for the change. The availability of good quality private rental properties is another reason cited.
There also seems to be the belief that buying a house = settling down, and 71% wanted to postpone that. Travelling was alsp one of the main deterring factors, as most believed that leased out houses provide flexibility.
At the same time, nearly 80% tenants preferred renting because it meant they didn't have to commit to a specific region, while others liked it because they could be close to friends and move jobs more easily.
The study, conducted on 1,126 non-homeowners aged between 18 and 34, suggested that there is a clear relation between buy-to-let and first-time buyers, according to which, as people put off buying a property, demand for rented accommodation would increase, which would boost the market for lending to investment landlords.
