People taking 'flexible approach' to first home

Prospective first-time buyers are looking at more inventive ways to get onto the property ladder.

With house prices still hovering around record highs and interest rates at a three-and-a-half year peak, UK residents thinking about buying their first home are considering going to housing associations, buying with friends, building their own homes, and even buying overseas in order to afford their first property.

Abbey discovered that (29 per cent) of those planning to buy their own home are considering shared ownership with a housing association, while 31 per cent said they would think about buying with family or friends.

More than one in four (27 per cent) would look into buying a wreck to get on the property ladder for less, while one in five (21 per cent) would think about building their own home and 18 per cent would consider buying abroad.

But for the majority, homes are still too expensive.

Just one prospective first-time buyer in 20 believes they will be ably to get onto the property ladder this year.

But if interest rates fell - as many predict - 15 per cent said they would be more likely to buy.

Barry Naisbitt, Abbey's chief economist, commented: "Our research also shows that they are willing to take a flexible approach to their housing finance and that, if the Bank of England did cut interest rates, this would give them a boost."