Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Brokers: First-Time Buyers Face Biggest Barriers
Half of mortgage brokers believe first-time buyers should be the main focus of future government housing support, according to new research from a broker poll by Accord in partnership with Pegasus Insight. Brokers warn that ongoing barriers for first-time buyers are affecting the entire UK housing market.
The poll found that 50% of brokers identified first-time buyers as the group most in need of government intervention. Brokers reported that first-time buyers are struggling with deposit and affordability pressures, with 44% citing these as their primary obstacles. A lack of effective support schemes was also highlighted as a growing concern, with brokers noting it is becoming increasingly difficult for people to get on the property ladder.
Brokers cautioned that the difficulties faced by first-time buyers are having wider consequences for market stability. They emphasised the critical role first-time buyers play at the bottom of the housing chain, enabling broader transaction flow across the market.
Education and guidance were also highlighted as essential, with brokers stressing the need for greater support to help first-time buyers navigate the buying process. Chris Hill, head of sales at Accord Mortgages, stated that high house prices, challenging deposit requirements, affordability constraints, and a lack of targeted schemes are making it harder for people to take their first step onto the ladder. Hill said the solution should include better-designed support schemes, affordability measures, continued lender innovation, and a strong focus on education.
Other Groups in Need of Support
While first-time buyers were the top priority, brokers also identified other groups needing support. Landlords ranked second, with 21% of brokers highlighting pressures in the private rental sector. Fourteen percent said older homeowners should be a priority, noting that many are struggling to downsize due to increased Stamp Duty Land Tax (SDLT) costs and limited mortgage options for older borrowers.
Brokers said these challenges are contributing to low housing stock and reduced market flow. By contrast, current homeowners and those looking to move were seen as needing the least support (both at 3%), while renters were also lower on the list at 9%. Brokers suggested that a more balanced housing strategy is needed—one that removes barriers for first-time buyers, supports responsible landlords, and enables older homeowners to move more easily.
Source: Mortgage Strategy