Almost two thirds of first-time buyers (57%) will be buying their first property with their partner, despite the fact that less than half of them (22%) cite their reason for buying as being so that they can live together.

The findings, from Alliance & Leicester Mortgages’ First Time Buyer research, show that with property prices becoming more difficult to afford for first time buyers, young people are increasingly finding practical ways to join the property ladder. Less than a quarter (24%) of first time buyers stated that they are able to foot the cost of their first purchase alone, so many are choosing to share the financial commitment by buying with their partner instead (57%).

The findings also show that when it comes to funding the deposit, an encouraging 42% of first time buyers are relying on their savings, however this does leave over half (58%) of first time buyers seeking financial help from elsewhere. Almost a quarter (24%) of first time buyers will be opting for a 100% mortgage to cover their deposit whilst, almost a fifth (18%) will be asking their parents to help foot the bill.

Paul Cooper, Head of Mortgages at Alliance & Leicester, said: “First time buyers are facing increasing financial challenges as house prices continue to rise. Our latest findings show that they are being forced to find practical ways to work through these challenges, such as buying with their partner, relying on their parents to fund the deposit or looking at a 100% mortgage to finance their purchase.”

“It is encouraging that people are clearly saving up for the deposit. In all cases first time buyers also need to account for all the costs of buying when looking at their budget or look for a mortgage deal that helps with these costs.”

The findings are from Alliance & Leicester’s new First Time Buyer research – the first annual look into the intentions and attitudes of first-time buyers – people who have bought a property in the last 12 months, and those who intend to make a purchase within the next year.

A representative sample of 1,200 first time buyers who they intend to buy with, how they plan to finance the deposit on their property and why they are joining the property ladder.

Who are they buying with?

• 57% of first time buyers plan to buy with their partner or their spouse.
• 24% are taking the plunge and buying alone - despite the fact that previous findings showed that the average price of a first time buyer’s purchase stands at £117,600.
• 8% of first time buyers are buying with the help of their parents or other relatives, although they will live alone.
• 5% are buying alone but plan to rent out a spare room.
• 3% of people will be buying and living with friends, and a further 1% with relatives.

• 42% of first time buyers have saved up money for the deposit on their first property.
• 24% of first time buyers plan to finance their property purchase with a 100% mortgage.
• 18% of first time buyers are getting help from their parents with financing the deposit - 10% are relying on a loan from their parents, whilst a lucky 8% will receive a financial gift from their parents to cover the deposit.
• 6% are opting for a personal loan and 1% plan to use their overdraft in order to finance the deposit.

• As prices steadily increase, it is not surprising that over two thirds of first time buyers (67%) are buying in order to get on the property ladder.
• 38% of first time buyers have calculated that mortgage payments would be cheaper than renting a property. A further 31% are buying as an investment.
• Only 22% claimed they were buying in order to live with their partner and a further 9% are moving in because of getting married.
• 19% of first time buyers are making the move in order to gain more independence.