Stepping onto the property ladder is proving to be an uphill battle for many first-time homebuyers, with significant regional disparities complicating the process. According to recent market research by Coventry for intermediaries, these differences are creating pronounced barriers that make it harder for some to secure a mortgage compared to others.

The research highlights a contrast across the regions. In the North East, a substantial 41% of first-time buyers report difficulties in securing a mortgage. This difficulty is particularly stark when compared to the South West, where only 18% of potential homeowners face similar challenges.

The situation appears even more daunting in the South East, where house prices soar over 20% above the national average of £282,000. Here, nearly one-third of first-time buyers find themselves struggling to get on the property ladder. London, known for its high cost of living and competitive housing market, tells a more severe story. An overwhelming 87% of first-time buyers in the capital have delayed purchasing a home due to the current economic climate, the highest percentage seen across all regions.

Underlying Causes of the Struggle

Jonathan Stinton, Head of Intermediaries at Coventry for intermediaries, said, “Our research suggests that many first-time buyers are continuing to face difficulties securing a mortgage, in some cases delaying their plans to step onto the ladder.” He explains that the challenges vary from region to region, influenced by a mix of factors such as differing house prices, upfront costs, mortgage products, and broader economic conditions. These elements together affect affordability and the variety of financing options available to buyers.

Implications for the Rental Market

As a consequence of these purchasing difficulties, the demand in the private rental market is expected to remain robust over the long term. With many unable to purchase their own homes, renting becomes a more viable, albeit often unwanted, alternative.