YouGov Survey: Pandemic Improves Finances for 32% of First-Time Buyers

A significant number of people, one third in a recent survey, say that their finances have improved during the COVID-19 lockdown. The YouGov survey asked aspiring or first-time buyers.

The same number or 30% of respondents, however, say that their financial situation has turned for the worse. These are the effects of job loss, pay cuts, and more being furloughed.

Meanwhile, existing homeowner respondents have yielded a far different response. Only 18% report an improvement in their finances, while 36% or a third of the respondents share that their situation has gone worse.

Specifically, people who have planned to put a property up in the market have been negatively affected.

Of this demographic of potential home sellers, 38% or two-fifths said that the pandemic has made their finances worse. On the other hand, 16% or one in six have seen their financial situation improve.

The respondents of this survey were 1,500 people across Britain who expressed plans to buy or sell a home in the next year. The survey was conducted before Chancellor Rishi Sunak announced the stamp duty holiday. This was a monumental decision with many celebrating the holiday while others criticizing it for the risks. Read more on the stamp duty holiday, here.

According to the results, among buyers planning to purchase a home within a year, 17% have already applied for a mortgage. But another 44% of said buyers expressed how very limited the choices were on mortgage applications. These respondents expressed how it was harder to find a deal that would approve their application.

Both first-time buyers (53%) and those already in the property ladder (36%) shared that the choices for mortgages were limiting and causes them to struggle.

Due to the uncertainty of the market, economy, and house prices, banks have moved away from low deposit deals. The government hopes that the temporary imposition of the stamp duty holiday will prompt some lenders to start introducing more affordable, "first-time buyer" friendly products.