A survey by Halifax of 18 to 34 year olds, who don't own a property, has revealed that, perhaps unsurprisingly, 48% of them believe it’s harder than ever to get onto the property ladder.
As house prices continue their rise, younger people are struggling to raise the deposit needed to secure a home or get a mortgage. Halifax looked into the reasons why this was so difficult and how 18-34 year olds felt they could combat this.
The findings suggest that some young people are resigned to staying in rented property. Half didn’t think home ownership is a realistic option for their generation. 65% can’t afford to either raise a deposit or earn enough to qualify for a mortgage.
Key Findings from the Survey included:
- Around 80% believe the lack of affordable property is why home ownership is so difficult
- 25% think that inheriting cash is the only way to get a deposit
- The national average deposit required is just over £32,000.
- One in 10 surveyed by Halifax predicted that they will rent indefinitely and never own a home.
- 22% believe home ownership is simply a 'thing of the past'
Stricter mortgage rules may also be a hindrance – the Mortgage Market Review (MMR) has meant that lenders are much more critical of financial situations which can have the effect of reducing the total amount young people can borrow. 33% of those surveyed said that even if they could raise a deposit, they doubted they would be able to secure a mortgage.
Martin Ellis, Halifax housing economist, said: “Even with the highest number of first-time buyers in the last decade in 2016, many young people still feel they are running the financial gauntlet – saving for a deposit, finding an affordable property in the right area and managing to fund living in the meantime.”
As the average age of owning your first home pushes past 30, there are a number of Government measure that should help 18-34 year olds to purchase their first home. As well as the new Housing White Paper which concentrates on providing more houses, the Help to Buy scheme and the Lifetime ISA, which will be launched in April, should assist young Brits to find their dream home.