New research from Bluestone Mortgages has revealed the leading barriers to homeownership.

For 37% of first-time buyers, general affordability and cost of living was cited as the greatest challenge, followed by raising a large enough deposit (34%) and having insufficient income (33%).

Although affordability concerns are cited as the biggest hurdle, very few potential first-time buyers are aware of the schemes in place that could help them get onto the property ladder.

Only 36% were aware of Shared Ownership, and just 8% were aware of Deposit Unlock and how it could help them.

Home movers who are trying to climb the property ladder face similar – if not the same – challenges. For 43% of home movers, house prices in the area were the greatest challenge. This was followed by mortgage interest rates (37%) and general affordability and cost of living (35%).

Despite these barriers to moving onto and up the property ladder, only three in 10 are currently using a broker to help them secure a mortgage. Another 33% are hoping to engage with one in the future whereas 15% are planning on applying for their mortgage directly with the lender.

Top five barriers to homeownership

Ryan Davies, strategy director at Bluestone Mortgages, said: “For many people getting onto or climbing the property ladder is still a distant dream, but it’s not impossible with the right support. Now more than ever, the industry needs to focus on developing and raising awareness of innovative solutions such as Deposit Unlock to tackle the challenges associated with getting onto the property ladder.

“Brokers have a key role to play in this, not only through marketing their services and demonstrating where they can add value, but highlighting the range of products available to help customers with smaller deposits achieve their homeownership ambitions.”