More young people despair of ever getting on the home ownership ladder

More young people despair of ever getting on the home ownership ladder

Young people remain pessimistic about their chances of getting on the property ladder, with only a third prepared to save for a deposit for more than three years before abandoning their plans.

According to the third annual Generation Rent report from Halifax, published this morning, the average deposit paid by first-time buyers in the first quarter of the year was £26,956 – but many would-be home owners say they cannot afford to save anything at all.

One fifth of non-home owners aged between 20 and 45 have already given up on the prospect of owning a property. The proportion rises to 43% among 40 to 45-year-olds.

Nearly six in ten of non-home owners believe they will be unable to retire if they have to rent all their life; a similar proportion believe people can never feel fully settled in a rental home; and nearly half think it is important for parents to bring up children in a home that they own, not rent.
Craig McKinlay, mortgages director at Halifax, said: “We are seeing a change in the social landscape of the UK, with a widening split between those who can and cannot afford to buy a home.
“Home ownership is clearly still an important goal for a lot of people, but fewer and fewer people consider it to be something they will be able to achieve. Renters say they never feel properly settled and fear they will struggle to retire, so the social impact of this shift is significant.

“More needs to be done to redress the balance, both through making home ownership more accessible and offering more stability through the rental sector.”