Semi-detached properties rose in popularity in August, accounting for 33.5% of first-time buyer purchases, up 1.7% year-on-year.
Meanwhile flats declined in popularity by 2.7 %, accounting for a fifth (19.6%) of first-time buyer homes. This is according to recent research from Barclays.
When it comes to keeping a check on costs, buyers are opting for higher-duration mortgages to reduce monthly payments.
Barclays data shows an increase in popularity of 30-plus year mortgage terms. Among first-time buyers, these account for 41.3% of purchases, as they are typically younger and so have longer to pay back a mortgage.
When asked about their preferences, nearly four in 10 (37%) mortgage holders prefer 30-40-year terms more than shorter durations because they should mean lower monthly repayments.
Meanwhile, the survey indicated that confidence in the housing market recovered slightly to 29% in August, following July’s six-month low of 26%.
Barclays all of market data reveals that three-bedroom homes are the most popular choice for properties, making up 46% of total purchases in August.
Millennial homeowners, age 28 to 43, are the most likely age-group to prioritise extra space – over a fifth (22%) say they bought a property with more bedrooms than they currently need, to avoid upsizing later. This compares to just 13% across all ages.
Encouragingly, a fifth (22%) of renters believe homeownership is achievable within five years, up from 16% last month and the highest level since February.
However, amidst reports of record high house prices, nearly half (47%) cite this as a major barrier to ownership, up from 38% in July.
Commenting on the latest research Barclays head of mortgages savings and insurance Jatin Patel said: “Our data shows that first-time buyers are not considering property merely to get a ‘foot on the ladder’ but for the long term. Whether it’s to create space for a growing family, or to invest for the future, it’s encouraging to see young people feel slightly more confident in taking this significant step.”
He added: “It’s clear that buyers are still cost-conscious as 30+ year mortgage terms become more popular – this option helps consumers reduce their payments by stretching their borrowing over a longer period of time.”
