New research reveals women and single people face a tougher climb to get on the property ladder, often making huge sacrifices to achieve their dream.
A new report has revealed the struggles faced by first-time buyers, highlighting how women are disproportionately affected. The report by Moneybox, titled ‘Voice of FTBs’, Understanding the UK’s FTB community, surveyed 4,000 people and uncovered some stark realities.
Women hit hardest by the housing hurdle
The research found that women are significantly more likely to make personal sacrifices to get a foot on the property ladder. A staggering 40% of female respondents admitted to cutting back on their lifestyle to save for a deposit, compared to a third of men. Even more concerning, 30% of women delayed having children to prioritise buying a home, a sacrifice made by less than a quarter of men (24%).
This disparity is likely linked to the persistent gender pay gap, which Moneybox argues contributes to a “significant gender deposit gap.” The research shows a £7,400 gap in average deposit savings between millennial men and women.
Adding to the struggle, 32% of women found the home buying process negatively impacted their mental health, compared to 18% of men.
The ‘single buyer penalty’ – going solo is costly
The report also reveals that single first-time buyers face a much tougher journey. With more people choosing to stay single for longer, this ‘single buyer penalty’ is impacting a growing number of people.
Solo buyers are starting with a significant disadvantage, saving on average £3,000 less than couples, with an average deposit of just £44,000. A tenth of single first-time buyers reported it took them a decade to save for their deposit, with 39% admitting the process took “much longer” than expected. The pressure of buying solo also took a toll on mental health, with a third finding the experience “overwhelming”.
Could financial help be the answer?
There is some good news for aspiring homeowners. Moneybox’s research found that those who received financial assistance from loved ones were able to buy a home twice as quickly. This support also allowed them to start saving for other life goals sooner.
It was revealed that 71% of recent first-time buyers received financial help, and a significant 46% of aspiring homeowners are hoping for similar assistance within the next year.
The study also showed that while those with higher incomes received greater financial assistance (averaging £35,000), a quarter of those who received any form of help were able to prioritize long-term savings as a result.
Millennials feeling the pressure
The report highlighted that millennials, more than any other generation, are feeling the squeeze of the housing market. They reported facing greater societal pressure to own a home and placed more importance on homeownership compared to other generations.
This pressure has led to 80% of millennials believing the government should do more to help them onto the property ladder, compared to 70% of Gen X respondents. This generation is also more likely to delay life events such as starting a family or saving for retirement to prioritize homeownership.
A call for change
Moneybox stressed the importance of addressing these challenges, warning of potential “deepening economic divides” and risks to “the very foundation of wealth creation in our society.” The report calls on the government to take action, urging them to create a working group dedicated to tackling the issues faced by first-time buyers.
Brian Byrnes, head of personal finance at Moneybox, stated: “Enabling first-time buyers is not just about helping young people buy a home; it is about nurturing the future wealth creators of our society.”
The report calls for a multi-pronged approach, including short, medium, and long-term solutions. These include regular engagement with first-time buyers and ensuring the longevity of schemes like the Lifetime ISA to support those struggling to save a deposit.