Delays towards the end of the homebuying process are a greater source of anxiety for first-time buyers than saving for a deposit, according to research from LPL.
The firm’s First Time Buyer Anxiety Report found that almost a third of first-time buyers experience increased anxiety while waiting for their purchase to complete, with delays involving surveys and legal work among the principal concerns.
The findings suggest that factors outside buyers’ control are responsible for much of the stress associated with purchasing a first home, although raising a deposit remains a significant concern.
One in seven first-time buyers reported feeling anxious about saving for a deposit, while one in eight said the process caused stress. Almost a quarter described saving as frustrating.
The research was conducted before the recent announcement of the government’s Your First Home scheme, which is expected to launch later this year and is intended to reduce the deposit required to purchase a new-build property.
UNEXPECTED COSTS ADD TO PRESSURE
Financial uncertainty also emerged as a significant issue, with 70% of respondents reporting unexpected costs during the buying process.
More than a quarter (27%) said these additional expenses had caused them stress.
While saving for a deposit and finding a suitable property are areas where buyers retain some control, the report found that anxiety often increased once transactions became dependent on third parties.
Waiting for surveys, conveyancing work and ultimately completion were among the stages associated with heightened concern.
Louise Stephens-Pantoja, head of operations at LPL, says: “Easing the stress and strain on first-time buyers is a key finding from our report.
“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 for the close to a million who look to get on the ladder each year.”
EARLIER ADVICE COULD EASE CONCERNS
The findings also highlight the potential importance of professional advice and communication throughout the transaction, particularly when buyers encounter delays or unexpected expenditure.
According to LPL, respondents reflecting on their experiences identified earlier professional support as a way of making the process easier to manage.
Stephens-Pantoja 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.”
