A third of people think Labour is the party best placed to support first-time buyers (FTBs), a Moneybox survey reveals.

The saving and investing app’s latest study of 1,000 aspiring home-owners across the UK found that 28% of respondents admitted they don’t trust any political party to help them purchase a home of their own, and only 8% believe the Conservatives have their back. The Liberal Democrats and Green Party saw only 4% and 3% FTB support respectively.

Meanwhile, it showed that two-thirds (66%) of aspiring FTBs have reevaluated their homeownership goals in the past six months, with half (51%) now planning to buy at a later date.

The average FTB has been saving for two years and 10 months and expects to be able to buy their first home in four years and 6 months, an increase from four years and two months in 2023.

FTB confidence has wavered in the face of persistent cost of living challenges and market volatility, with 41% admitting they are feeling pessimistic about their chances of becoming a homeowner, increasing from 37% a year ago and 21% in 2022.

Over half said this is because the cost of living has eroded their disposable income, making it harder to save a deposit while 51% are disheartened because of rising house prices and 37% are concerned that high interest rates have made mortgages more unaffordable.

However, 35% report they continue to feel optimistic about their home buying plans with 21% confident they will get on the housing ladder despite the ever-changing environment.

The most notable drivers of their optimism include the belief that interest rates will start to come down this summer (26%), the cost of living crisis is slowing down, and anticipation of support measures an incoming government may introduce following the general election (18%).

However, unavoidable financial pressures have meant that FTBs are now saving 18% less towards their first home deposit than a year ago, down from £344 to £286 a month, and a quarter (26%) have had to dip into their hard-earned deposit savings to cover unexpected expenses.

Despite these challenges, owning a home is more important than ever for 79% of FTBs. Two-thirds (62%) believe being a homeowner is vital to achieving financial security while 55% are primarily motivated to buy to escape the increasingly expensive rental market, up from 48% in 2023.

Cash savings have remained the most popular way FTBs save for a deposit over the years, typically using a combination of easy access savings accounts (42%), Cash ISAs (29%), and the Lifetime ISA (22%).

Meanwhile, affordable homeownership schemes have all become less popular in the last six months with the number considering the First Homes Scheme or Rent-to-buy/Rent-to-own falling over the year from 31% to 22%, and 26% to 20% respectively. Only 9% said they were considering the Mortgage Guarantee Scheme.

Moneybox head of personal finance Brian Byrnes says: “With the General Election just around the corner, manifesto pledges from political parties have fallen short of providing much-needed reassurance and tangible financial support to FTBs who have been navigating significant challenges over the last few years.”

“With house price growth significantly outpacing wage growth in recent decades, the solutions needed to sustainably boost homeownership without further inflating house prices are complex and will take some time to bear fruit. That is why we at Moneybox are calling for the incoming government to commit to pragmatic measures that can be delivered in the near term, such as future-proofing the Lifetime ISA.”