First-time buyers face confidence gap as 76% encounter unexpected challenges

New research unveils a major ‘confidence gap’ which leaves first-time buyers unprepared for the realities of getting on the property ladder.

90% of first-time buyers believe they are prepared and understand the home buying process before they begin, according to a new study from LPL, but the vast majority go on to encounter unexpected challenges that knock their confidence and drive anxiety during their purchase.

Surveying first-time buyers across the country - 50% currently going through the process and 50% retrospectively looking back on it - the report found a significant disconnect between the confidence buyers feel going into the process and what they actually experience when it’s underway.

While 90% felt confident in the process, almost three quarters (71%) faced unexpected costs and 62% experienced a rejected mortgage application, while a similar number were gazumped and 70% saw delays with solicitors. A quarter of people who had experienced these delays state it had affected their mental health.

It’s a confidence gap that is largely driven by a lack of control, particularly among those that favour advice from social media, friends and family rather than professional input. The survey found that for those going through the process, buyers are more likely to rely on family, friends and online articles for guidance.

However, for those who had completed on their first home within the last two years, professional guidance from mortgage brokers, estate agents, lenders and conveyancers were significantly more valuable when looking back on their experience.

Louise Stephens-Pantoja, head of operations at LPL, said: “Getting on the property ladder is one of life’s most exciting milestones, but there is a clear gap between how prepared first-time buyers feel and how prepared they actually are.

“Buyers start the journey confident as there’s more information available than ever before, but it’s the unexpected that becomes the biggest source of stress. Better communication and clearer expectations can help prevent this and, as those looking back retrospectively point out, professional help earlier in the process can make a real difference and help navigate those moments with more confidence.”