First-time buyers’ concerns are shifting significantly by age, with younger buyers focused on upfront costs and affordability, while older purchasers increasingly worry about the long-term costs of homeownership, according to new research from Mortgage Advice Bureau.
The research found that almost a third (29%) of aspiring homeowners view hidden costs, such as Stamp Duty, legal fees and moving expenses, as one of the biggest barriers to getting onto the property ladder.
However, the concerns facing first-time buyers differ markedly across age groups.
Among 18 to 24-year-olds, hidden costs represent the biggest concern, with 38% identifying them as a major barrier to homeownership. More than a third (36%) also cited job and income insecurity as a key worry, underlining the financial uncertainty many younger buyers face when trying to purchase their first property.
For those aged 25 to 30, affordability remains the dominant issue. More than half (56%) said high house prices were a significant concern, while 37% highlighted rising mortgage rates.
By contrast, buyers aged 31 to 40 are increasingly focused on the financial responsibilities that come after purchasing a home. More than a third (36%) said unexpected repair costs were their biggest concern, suggesting priorities shift from securing a property to maintaining it.
The findings indicate that homeownership concerns evolve with age, with Gen Z buyers focused on upfront and hidden purchase costs, younger millennials concerned primarily with affordability and borrowing costs, and older millennials increasingly focused on maintenance expenses.
Mortgage Advice Bureau also identified a lack of awareness around specialist mortgage products designed to improve affordability.
Although buyers aged 25 to 30 were among the most aware of specialist mortgage options overall, knowledge of newer affordability-focused products remained low across younger age groups.
Just 19% of those aged 25 to 30 and 15% of 18 to 24-year-olds said they were aware of track record mortgages, which use evidence of rental payments to support affordability assessments. Awareness of part-and-part mortgages was similarly limited.
Rachel Geddes, strategic lender relationship director at Mortgage Advice Bureau, said: “Our research shows there’s no longer a one-size-fits-all first-time buyer journey. Every generation is facing a different set of financial pressures and priorities when it comes to getting onto the property ladder.
“Many of these concerns are completely understandable, particularly at a time when affordability pressures remain high and buyers are trying to navigate rising living costs alongside saving for a home.
“However, there are now far more flexible lending solutions and affordability-focused products available than many people realise, designed specifically to help first-time buyers overcome some of these financial barriers.
“That’s why speaking to a broker earlier in the process can make such a difference. The right advice can help buyers understand what may already be achievable, giving them the confidence to take that first step onto the property ladder sooner.”
The research suggests that while affordability challenges continue to dominate the first-time buyer market, greater awareness of specialist lending solutions could help some buyers overcome barriers that currently appear insurmountable.
