• First-time buyers are lacking the reassurance that they can meet their homeownership goals, according to Moneybox research
  •  This comes as over half (58%) say they have pushed back their home-buying goals and now plan to buy later than previously hoped
  • 40% of first-time buyers admit to feeling ‘worried’ when viewing news and recent updates on mortgages and house prices 

 

22/11/2023: Brian Byrnes, Head of Personal Finance at Moneybox comments: “With the Chancellor set to give his Autumn Statement later today, it’s clear that aspiring first-time buyers are worried. And, there can be no doubt that support is needed as it has become increasingly difficult to get on the property ladder in recent years.

Saving for a deposit remains one of the biggest hurdles many face on the journey to buying a home and that is why the Lifetime ISA is such a lifeline to so many.  Whilst it is important to also consider supply side reform, many of the solutions needed to address housing supply and barriers to entry are complex and will take some time to bear fruit. And so, we passionately believe that what is needed now are pragmatic measures that can be delivered in the near term which will help aspiring first-time buyers navigate the current economic landscape with greater confidence and continue making progress towards their homeownership goals

Future-proofing the Lifetime ISA property price cap is therefore a step we’d like to see the Chancellor take today.

 The LISA property price cap currently allows people to use their savings towards a first-time property valued at £450,000 or less. While less than 1% of Moneybox LISA savers have been affected by the property price cap to date, if the price cap had risen in line with house prices since its introduction in 2017, it would stand at £560k today.

 “By introducing an index-linked price cap subject to an annual review, we believe the Government can provide much-needed reassurance and peace of mind to aspiring property owners across the UK. Not only this, but it would help to instil confidence in the thousands of younger people embarking on their LISA journey today.” 

*Methodology: Research undertaken amongst 1000 aspiring first-time buyers by OnePoll in November 2023

 

Brian is available for comment and interviews ahead of and following the Autumn Statement, please contact moneybox@teamspirit.co.uk to arrange an interview or to speak to our case studies.

 

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Brian Byrnes Bio:

As Head of Personal Finance at Moneybox, Brian provides invaluable multi-channel financial education to inspire and empower all to work towards their financial goals with greater confidence. Brian works closely with Moneybox product teams across saving, investing, home-buying, and retirement helping deliver intelligent features that help our customers make better financial decisions. Brian is a Chartered Wealth Manager and before Moneybox led the advice and customer success units at Wealthsimple UK.

About Moneybox:

Moneybox is the award-winning app on a mission to help people build wealth with confidence so they can enjoy life, today and tomorrow. Launched in 2016 by co-founders Ben Stanway and Charlie Mortimer, the company has experienced rapid growth, and today has over £5bn in assets and a community of more than 1 million customers. Moneybox provides a range of great value products and services, across saving, investing, home-buying, and retirement as well as helpful tools and educational content, to help people manage and achieve their short, mid, and longer-term financial goals. Moneybox enables customers to set money aside in the way that suits them best using round-ups, regular deposits, or instant payments. In March 2022 Moneybox raised £35m in a Series D funding round, led by Fidelity International Strategic Ventures, existing investors Oxford Capital, CNP, Burda and Breega, plus new investor Polar Capital. This brings total funds raised by the digital wealth manager to £100+ million.