The Challenges of Buying a First Home as a Single Person

Buying a first home is a major challenge for most people, but when you’re on your own, it is even harder. A newly-published report by the Building Societies Association (BSA) says two high incomes are increasingly needed to afford mortgage repayments, and first-time buyers are facing the toughest conditions for 70 years.

Jess Waring-Hughes, a 32 year-old business manager, is saving furiously to buy on her own and says there is little support for people in such circumstances. The answer for her was to move back in with her parents while she puts money aside.

Moving back in with parents can be a necessary step for many first-time buyers

The Rise of the Boomerang Generation

She is not the exception; she is the norm. In 1997, the most common living arrangement for an adult aged between 18 and 34 was being in a couple with children, according to the Resolution Foundation think tank. Now, it is living with your parents.

Lisa Griggs is one of them. Like Jess, she is 32, working full-time and frustrated. “I still feel like a child,” she says, albeit one who pays rent to her parents. “I do not have any debts, I live within my means, yet I am still unable to purchase anything close to my family and close to my work.”

A frustrated first-time buyer who feels like they will never be able to afford a home

A Welcome Boost in Buyer Activity

However, there is some good news for first-time buyers. The Bank of England rate cut has sparked a welcome boost in buyer activity, according to Rightmove. Estate agents have seen a 19% jump in the number of people contacting them about homes for sale since August 1, compared with the same period last year.

The average new-seller asking price across the UK had fallen 1.5% in August to £367,785, a £5,708 monthly drop. But the property website said the drop was seasonal, and had happened for the last 18 years, as sellers put home-moving plans on hold in August to go on holiday.

The Bank of England rate cut has sparked a welcome boost in buyer activity

The Future of the Mortgage Market

The future of the mortgage market is uncertain, but one thing is clear: first-time buyers need more support. The Mortgage Vision 2024 conference will bring together industry experts to discuss the latest trends and forecasts in the UK mortgage market. The conference will include a Partner Panel Discussion exploring potential new revenue streams for mortgage brokers to enhance their client offerings.

The Mortgage Vision 2024 conference will bring together industry experts to discuss the latest trends and forecasts in the UK mortgage market

Conclusion

Buying a first home as a single person is a challenging task, but it’s not impossible. With the right support and guidance, first-time buyers can navigate the complex mortgage market and find their dream home. As the mortgage market continues to evolve, it’s essential that we prioritize the needs of first-time buyers and provide them with the tools they need to succeed.