Over a third of younger first-time buyers rely on friends and family for advice on the homebuying process, according to latest research from Coventry for intermediaries.
The mortgage lender said first time buyers (FTBs), aged 18 to 34, are primarily relying on advice from family and friends rather than a broker for support on the homebuying process.
The research showed that while 90% of the youngest demographic of FTBs aged 18 to 24 used a broker, only a third (33%) said they relied on them specifically for guidance and information when buying their first home.
The first-time buyer research was conducted in partnership with the Centre for Economics and Business Research (Cebr). Its findings were published today (16 November).
It highlighted an opportunity for brokers to step in and support these younger clients earlier in the process.
It said two fifths (40%) of all first-time buyers surveyed said they needed more help and information on applying for a mortgage.
A further 36% also want more guidance on the exchange of contracts and the costs of buying a home.
The lender noted that to plug this information gap, FTBs should engage with brokers at the earliest opportunity to ensure they’re fully aware of the mortgage process and the all the key costs involved.
FTBs have also been subject to cost-of-living pressures and high inflation with a third (33%) of those aged 18 to 34 saying they found it difficult to secure a mortgage.
The research showed that FTBs who used a broker during their homebuying journey benefitted from the guidance they provided – 96% said brokers played an important role in their experience as a first-time buyer.
It also looked at social media use of FTBs and found that just 23% of those aged 18 to 34 cited social media as a source of information and advice during the homebuying process, compared to 47% of FTBs aged over 45.
Coventry for Intermediaries head of intermediary relationships Jonathan Stinton said: “Buying a home is an exciting milestone for first time buyers, and it’s only natural that they would lean on friends and family for advice, as in many cases they would have already been through the homebuying process themselves.
“However, our research shows there is an advice gap between younger first-time buyers who need extra support and guidance on the fundamentals of buying and who they are relying on to provide this level of support.”
