Four in 10 aspiring homebuyers are delaying their purchase in the hope that house prices will fall in the future, according to a new survey. The research, which polled 2,000 adults who do not currently own a home, found that prospective buyers have saved an average of approximately £36,000 for their first property.
In London, potential first-time buyers have accumulated even larger deposits, with average savings exceeding £46,000. However, while half of those surveyed feel confident they have enough money for a deposit, they are still waiting for prices to drop to achieve greater financial stability. Even 83% of those who have enough saved for a 10% deposit remain cautious.
Buyers Aim for Larger Deposits
Nearly 45% of respondents still want to accumulate a deposit worth at least 20% of their dream property's value before purchasing, despite requiring only 5% to get onto the property ladder. A further 29% want to guarantee they have a sizeable emergency fund in place before committing to a purchase.
Oli O'Donoghue, head of mortgages at HSBC UK, which commissioned the research, said: "Wider market conditions can change frequently, which can make people feel they should wait a little longer before making a move."
"While it's natural to keep an eye on what's happening in the market, and there can be a tendency to try and find 'the right time' to buy, buying a home is a really individual journey and should also be viewed through a personal lens."
Personal Milestones Influence Timing
The study revealed that 77% of would-be buyers are monitoring house prices closely in their local area. For some, the right time to buy is as much about reaching personal milestones as it is about what's happening in the housing market.
One in 10 want to know where they want to live long-term before buying, while 9% are waiting for a pay rise or promotion. A further 8% want to be in a long-term relationship before taking the plunge.
It also emerged that 30% hope delaying their purchase will allow them to buy a "forever home" rather than a "starter home", according to the OnePoll research. Meanwhile, 18% believe waiting could help them secure an additional bedroom.
Advice for Prospective Buyers
Oli O'Donoghue added: "Buying a home is one of life's biggest milestones, and it's natural to want to feel confident that you're making the right decision for your future."
"While there's no shortage of predictions about the housing market, everyone's circumstances are different. Understanding what you can afford, exploring the options available to you, and thinking about your longer-term goals can help you make a decision that feels right for you."
"Speaking to a financial expert can help people navigate their options, understand the steps they can take towards homeownership, and feel more confident about moving forward with their plans."
