More than half (53%) of first time buyers cited the cost of property as the single biggest challenge facing them, followed by the ability to save a deposit (22%) and lack of supply in the areas they would like to buy (17%).
This is according to research commissioned by Bank of Ireland which has shown that first time buyers are ready to travel longer distances from their home to work, with one in four (28%) prepared to commute over 30km (up from 18% in April 2017).
The research shows that continued growth in property prices in Dublin means first time buyers are increasingly looking outside the capital to purchase property. Those hoping to buy in Dublin declined to one in four (28%), from one in three (35%) last April.
With average monthly rent of €779 being paid by respondents, and most (78%) planning to buy with a partner, the vast majority (91%) said that they are confident they can afford monthly mortgage repayments. Three in four (75%) are confident that they can make mortgage repayments should interest rates increase significantly.
Four in five (82%) first time buyers have a savings plan, with one in three (32%) saving between two and four years. The average amount being saved is €461 per month, up from €444 in April 2017.
In order to support first time buyers on their journey, Bank of Ireland has launched a new online First Time Buyer’s Guide. The Guide takes prospective home owners through the entire process, from deciding to buy and saving for the deposit, to putting the finishing touches to their new property.
Discussing the research, Head of Mortgages at Bank of Ireland, Shane Quinlan said, "There is much to consider for first time buyers when navigating the current property market. While affordability of mortgage repayments doesn’t appear to be a major issue, and most have a savings plan in place, the cost of property and ability to save the required deposit is still a concern. Housing supply and pricing issues are clearly driving interest away from Dublin, with more first time buyers prepared to travel longer distances."