Lots of young adults had to shelve homebuying plans in 2020

19 January 2021 | General

A number of young adults had to scrap their plans to buy in 2020, as the number of mortgages available to those with a small deposit diminished, the How We Live study from Aviva found.

Last year saw the market lockdown stop house moves in March. Once the market reopened the stamp duty holiday did more to help homemovers and investors than first-time buyers.

Almost a third (29%) of under-25s and two fifths (39%) of 25–34-year-olds had their home buying plans thwarted.

Meanwhile seven in 10 (69%) potential first-time buyers rethought their homebuying plans.

Gareth Hemming, managing director, personal lines, Aviva, said: “The stamp duty break has brought welcome opportunities to people who were in a position to make a property purchase and there’s been much talk of the booming housing market.

“However, there’s also a hidden story of people who were hoping to move in 2020 but had to put their plans on hold because of the many uncertainties. The How We Live study suggests there are far more people in this camp than those who have been able to benefit from the stamp duty holiday.

“It remains to be seen how this will play out in the longer term, but we can hope that progress will be made in 2021, bringing new hopes for those who have found themselves in limbo this year.”

Some people moved unexpectedly in 2020.

More than a quarter (29%) moved to find somewhere bigger or more suitable for home-working arrangements.

Meanwhile 13% moved to take advantage of the stamp duty holiday.

This post has originally been featured in Property Wire.