Eighty four percent of those hoping to buy their first property have a deposit saving plan in place, according to new research from Bank of Ireland. This is an increase of 10% on 2016 research.
However, 43% of respondents admitted they would need to get financial help from their family or friends in order to meet the deposit requirements, even though nearly half (46%) have been saving for two years or more.
The cost of property was cited as a challenge by a significant number (87%) of respondents. Almost half (49%) of those surveyed said the lack of supply in the areas they wanted to buy was a challenge with more than half (57%) citing the ability to save the deposit.
The research shows a significant majority (90%) of those surveyed want to buy a house rather than an apartment despite recent industry figures suggesting that buying a house is beyond the reach of many first time buyers.
Uncertainty in interest rates is having an impact - among those who expressed a preference, 56% will opt for fixed rate mortgage, ahead of 44% for variable. Twenty eight percent of respondents were undecided on their rate option. This preference for fixed rate is linked to the fact that 91% of respondents cited “control over my monthly repayments” as important.
The research which was conducted amongst first time buyers by RED C in March and April, showed that of those who are actively saving for their deposit, the average amount being put aside per month is €444, down slightly on 2016 research.
Three in four (75%) first time buyers surveyed are currently renting and pay an average of €820 per month. The average age of the first time buyers surveyed was 34 and half have children.
A further 39% of those surveyed were unaware of the Central Bank’s regulation allowing first time buyers to take out a 90% mortgage regardless of the property value, however the majority of those aware of the regulation (63%) agreed it would help them get a mortgage earlier than planned.
Commenting on the research, Head of Mortgages at Bank of Ireland, Karena O’Sullivan said, "It is very evident that there are a number of issues facing first time buyers, particularly with rents and property prices increasing and supply not meeting demand across the country."
She added, "It was interesting to see that a large proportion have set their sights on buying a house over an apartment, indicative perhaps of the life stage many first time buyers in Ireland are at, with many aged in their mid-thirties with children."
Source: www.businessworld.ie
