First home buyers are increasingly attracted to “alternative pathways” to home ownership, such as shared equity, according to a survey conducted by lenders mortgage insurer Helia.

Helia commissioned CoreData to survey home buyers and prospective home buyers. The research was done in June and the report was based on 353 responses.

The survey found that 5 per cent had used a rent-to-own scheme to purchase a home, while 39 per cent of prospective first home buyers said were likely to use such a scheme.

Three per cent had purchased a home using some form of co-ownership, while 36 per cent said they were likely to. 

Two per cent used shared equity, while 28 per cent said they were likely to.

The survey also found increased use of parental loan guarantees, ‘bank of mum and dad’ contributions and government schemes.

The growing interest in these alternatives reflects the increasing difficulty first home buyers have saving a deposit, with 91 per cent saying it has become more difficult. And 88 per cent said they were finding it harder to find something to buy.

According to the survey, only 10 per cent of prospective first home buyers are actively looking to buy in the next three months, 37 per cent are researching and seeking information, and 53 per cent are prepared to purchase their first home but are not active.

Growing interest also reflects the increasing availability of alternatives. Over the past couple of years groups like Bricklet, OSQO, FrontYa, OwnHome and Home Owners’ Partnering Equity have launched a range of shared equity, deposit bond and rent-to-own schemes.

Earlier this month, a new entrant Midkey started offering a home loan with deferred payments that can be used as a first or second mortgage.