2020’s study reveals the cost of property remains the single biggest challenge facing first-time buyers in Ireland.
Now in its fifth year, the first-time buyer survey captures the challenges facing first-time buyers in Ireland. The survey found that for first-time buyers, 2020 was a time of familiar challenges. What was different about 2020’s research was the impact of Covid-19.
The Impact of Covid-19
Our analysis revealed that Covid-19 has had a major impact on first-time buyers, with 48% of respondents revealing that Covid-19 has delayed their plans to buy a home, while almost one in four (23%) said the pandemic had accelerated their plans to buy a home . Another impact of Covid-19 was that a significant number of first-time buyers (22%) said they were reconsidering the type of property they wanted to buy. One in five (21%) said that COVID-19 had also made them rethink the location they would like to buy in. This echoes a MyHome.ie survey from July - September last year, which showed a huge increase in people searching for rural cottages.
Main challenges facing first time buyers in 2020
Although Covid-19 has seen new challenges arise for First-time buyers in 2020, many familiar challenges still remain. Over half of first time buyers (52%) surveyed stated the high cost of buying a home is their single biggest challenge. The survey also revealed that supply in desired areas (20%) and the ability for borrowers to save enough for a deposit (18%) continue to be seen as the primary obstacles preventing people from getting on the property ladder.
On average, in 2020, people saving for their first home are saving €550 a month, the highest since the survey began 5 years ago. And 12% of them said they were saving over €1,000 a month.
Yet despite all their considerable saving over several years, 55% of first-time buyers said they would have to rely on financial help from family or friends to secure their first home. The majority were expecting this would be in the form of a financial gift, rather than a loan.
Download the full report here
*Research was conducted by RED C between November 2nd and 3rd 2020 with 204 people aged 25-45 who are ‘planning to buy or build their first home in the next few years’
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