Why first time buyers must 'compromise' to get on the property ladder

Expectations must be realistic when it comes to buying your first home.

According to research from Yorkshire Building Society, a high 79 per cent of first time buyers believe their first home will meet all of their needs and 42 per cent think their first home will also be their last.

The Housing Britain report explores barriers to home ownership, and found that while first-time buyers have high expectations for their first home, the reality as their lives evolve is somewhat different.

The report found that 62 per cent of ‘second steppers’ said their home meets only some or none of their needs, with size named by almost half as the main issue, followed by location for 29 per cent, and their home not being energy efficient enough for around a quarter.

People's expectations of their homes change during the time they live in them...

Of those who did not expect their next property purchase to be their last, 30 per cent expect to own three homes over the course of their lifetime, a fifth expect to own four, and 17 per cent aim to own five or more.

Jeremy Duncombe, director of mortgages distribution at Yorkshire Building Society, said: “Our research tells us first-time buyers have extremely high expectations of their first home – but pragmatism and compromise are likely to be needed in reality.

“Those who are prepared to compromise, should be able to get on the housing ladder sooner, but should be aware of the sacrifices those compromises will bring.

“For example, our findings show that more than a quarter of first-time buyers are willing to buy a smaller property than they had hoped for – but once living in that property, we know that not having enough space is their number one frustration.

“A big part of this may be first time buyers not taking into account how their needs may change when reaching key milestones such as having children.”

When asked at what stage of the housing ladder they expected to feel most settled in their home, 44 per cent of first-time buyers said their first home.

By second stepper stage, however, just 17 per cent said they felt most settled in their first property, demonstrating how needs do change.