A surge in would-be homebuyers is being held back by affordability pressures, weak confidence and poor awareness of government support schemes, according to new research from Shawbrook.
Despite 77% of aspiring buyers saying they hope to purchase a home within the next five years, the lender’s latest Home A-Loan report suggests many feel ill-equipped to take the first step.
Almost a third (31%) believe the Government should provide greater support, yet existing schemes remain significantly underused.
One in five prospective buyers are unaware of any help available – including the Lifetime ISA, the remnants of Help to Buy, and long-standing initiatives such as Right to Buy.
ADVICE GAP
Shawbrook said the findings point to a structural advice gap. Only 10% of aspiring buyers have sought guidance to improve their finances, while 12% cite poor access to mortgage advice as a major barrier to ownership.
The lender warns that buyers who could benefit from specialist products or tailored planning are often not reaching advisers early enough.
“The gap between desire and feasibility is widening.”
Affordability remains the largest hurdle. Some 43% of respondents cited general affordability as their primary concern and 41% pointed directly to high house prices.
With mortgage rates remaining elevated and deposit requirements still a stretch for many, Shawbrook says the gap between desire and feasibility is widening.
Confidence is also subdued. Only one in five potential buyers feel fully confident they would be approved for a mortgage, falling to 10% among those with adverse credit histories – a group more likely to include younger and lower-income households. The report highlights a growing cohort of would-be buyers who assume they will be rejected before they even apply.
LOW CONFIDENCE
Steve Griffiths, Commercial Director for retail mortgages at Shawbrook, says: “Our research makes clear the mismatch between people’s desire to buy and their readiness to do so.
“A combination of affordability pressures, a lack of awareness of support schemes and low confidence is stopping many from taking that crucial first step.”
“The market remains tough, particularly for those without family help or significant savings,” he adds. “But with the right support, more aspiring buyers could turn plans into purchases.”
