The home-buying process has overtaken saving for a deposit as a major concern for first-time buyers, according to research from Tembo.
More than half, 51%, rank the legal and administrative process among their three biggest concerns when purchasing their first home, compared with 43% who identify saving for a deposit.
House prices remain the biggest concern, cited by 78% of respondents, but the findings suggest the complexity of completing a property purchase is increasingly weighing on buyer confidence.
One in three prospective buyers, 33%, report low confidence in navigating the process, according to the study of 525 UK first-time buyers.
LEGAL CONCERNS
When respondents were asked to identify their single biggest challenge, 17% selected the legal and conveyancing side of purchasing a home.
That narrowly exceeds the 16% citing saving for a deposit, while 11% point to the rising cost of living and 8% to understanding mortgages.
Tembo says uncertainty surrounding conveyancing, surveys and other legal and administrative stages can leave buyers unsure about timescales, responsibilities and the eventual cost of completing their purchase.
Paul Elcino, Mortgages Director at Tembo, says: “For years, the conversation around first-time buyers has focused almost entirely on saving for a deposit. Our research suggests that’s no longer the whole story.
“Once buyers have overcome that hurdle, they’re entering a home-buying process that many find confusing, stressful and unpredictable. I’m sure most people can think of a time when their friends or family have been buying a home and have complained about the frustration with the legal process.
“The legal work, surveys and administration are essential parts of buying a home, but too often they feel fragmented and opaque. Buyers don’t always know how long the process will take, who’s responsible for what, or what the final bill will look like.
“At a point when people should be feeling excited about buying their first home, many instead feel anxious about navigating a system they don’t fully understand.”
ADVICE DELAYED
The research also finds many prospective buyers wait until relatively late in the process before seeking professional advice.
Almost three-quarters, 73%, had not yet spoken to anyone about buying their first home.
Just 17% believe they should speak to a mortgage broker when they first start considering a purchase, with most saying they would wait until they had accumulated between half and all of their deposit.
FIXED-FEE SERVICE
Tembo has launched a fixed-fee service, Tembo One, bringing together mortgage advice, conveyancing, property surveys and insurance.
The service also provides fall-through protection for legal and survey costs if a transaction collapses through no fault of the buyer, alongside a dedicated home-buying adviser.
Richard Dana, Founder and Chief Executive Officer of Tembo, says: “Tembo has always existed to make home ownership more accessible.
“With Tembo One, we’re taking that mission a step further, tackling one of the most frustrating parts of buying a home. We’re incredibly proud to bring together every stage of the home-buying journey into one seamless, transparent service.”
The research was commissioned by Tembo among 525 UK first-time buyers, comprising 400 prospective first-time buyers and 125 Tembo customers.
