New proprietary mortgage data from Barclays reveals increasing popularity of semi-detached properties, as first-time buyers report a greater appetite for ‘forever homes’. 

Thinking about their costs in the near term however, buyers are opting for higher-duration mortgages to reduce their monthly payments. Meanwhile, confidence in the housing market rebounded slightly to 29 per cent in August, following July’s six-month low of 26 per cent.

Barclays mortgage data shows that three-bedroom homes are the most popular choice for properties, making up 46 per cent of all purchases in August. 

Millennial homeowners, age 28 to 43, are the most likely age-group to prioritise extra space – over a fifth (22 per cent) say they bought a property with more bedrooms than they currently need, to avoid upsizing later. This compares to just 13 per cent across all ages.

First-time buyers are increasingly turning to houses, with semi-detached properties making up over a third (33.5 per cent) of August’s first-time purchases, up 1.7 per cent year-on-year. Meanwhile flats declined in popularity by 2.7 per cent, accounting for a fifth (19.6 per cent) of first-time buyer homes.

A third (33 per cent) of recent Gen Z buyers, aged 18 to 27, said they bought a ‘forever home’ so that they wouldn’t have to move. Similarly, nearly three in 10 (27 per cent) of all recent buyers said they intend to stay in their new home for at least 10 years.

When choosing a property, certain features are more highly sought after by those in different life stages. Nearly half (49 per cent) of Gen X, aged 44 to 59, and 40 per cent of Millennial homeowners said they prioritised having a garden or outdoor space. Comparatively, only a third (32 per cent) of Gen Z felt the same. Meanwhile, Gen Z were much more likely to want a dedicated work from home space (28 per cent) compared to 20 per cent of Millennials and just 9 per cent of Gen X.

Barclays data also shows an increase in popularity of 30+ year mortgage terms. Among first-time buyers, these account for 41.3 per cent of purchases, as they are typically younger and so have longer to pay back a mortgage.

When asked about their preferences, nearly four in 10 (37 per cent) mortgage holders feel 30-40-year terms are more desirable than shorter durations because they could mean lower monthly repayments. This comes as four in 10 homeowners (41 per cent) believe their mortgage payments take up too much of their monthly income. On average, homeowners report their mortgage accounts for 27.7 per cent of their take-home pay, up from 26.6 per cent in July.

However, over half of those with a mortgage (53 per cent) are wary of extending their loan duration, as it would make them feel financially vulnerable later in life, with Millennials, feeling this most strongly at 60 per cent.

A spokesperson for the bank says: “Our data shows that first-time buyers are not considering property merely to get a ‘foot on the ladder’ but for the long term. Whether it’s to create space for a growing family, or to invest for the future, it’s encouraging to see young people feel slightly more confident in taking this significant step.  It’s clear that buyers are still cost-conscious as 30+ year mortgage terms become more popular – this option helps consumers reduce their payments by stretching their borrowing over a longer period of time.”