First-time buyer anxiety increases as purchasers move through the transaction process and peaks while they wait for completion, according to new research.
LPL’s First Time Buyer Anxiety Report finds almost a third of first-time buyers experience increased anxiety towards the end of their purchase, with delays and elements outside their control among the biggest causes.
The findings come ahead of the planned launch of the Government’s Your First Home scheme, which is intended to provide additional support for first-time buyers.
While saving for a deposit remains an early source of concern, the research suggests the stresses associated with actually completing a purchase can become considerably greater.
SAVING PRESSURES
One in seven first-time buyers report feeling anxious about saving for a deposit, while one in eight say it causes stress and almost a quarter find the process frustrating.
Louise Stephens-Pantoja, Head of Operations at LPL, says: “Even before starting the journey, a large portion of first-time buyers are living with added anxiety, stress and frustration simply by trying to save in a cost-of-living crisis.
“It is positive to see further help is being delivered to first-time buyers moving forward and the new initiative will hopefully make it a bit more manageable.”
However, LPL finds that many of the biggest sources of anxiety occur once a purchase is underway and are outside the buyer’s direct control.
Waiting for surveys and legal work are among the issues identified, while delays as completion approaches cause some of the highest levels of anxiety.
UNEXPECTED COSTS
Unexpected expenditure is another significant problem, with 70% of first-time buyers encountering costs they had not anticipated during the buying process.
More than a quarter – 27% – say these additional costs caused them stress.
Stephens-Pantoja says improving communication throughout the transaction could help reduce some of the pressure on inexperienced buyers.
She adds: “Better communication and clearer expectations can help prevent this and, as those looking back retrospectively point out, professional help earlier in the process can make a real difference and help navigate those moments with more confidence.”
