First-time buyers in bequest hope
One in four believe they may never afford a house
One in four young people are pinning their hopes on an inheritance to get a foothold on the property ladder, research out today reveals.
A quarter of 18 to 34-year-olds believe that only money from a relative will unlock the door to their first home, while a similar number think they will never be able to buy a property.
ONE IN four young people are pinning their hopes on an inheritance to get a foothold on the property ladder, research out today reveals.
A quarter of 18 to 34-year-olds believe that only money from a relative will unlock the door to their first home, while a similar number think they will never be able to buy a property.
Although home ownership remains a key aspiration for the young, around half those surveyed believed it was less attainable than ever, and nearly one in five said they would consider leaving the UK if it increased their chances.
The figures, compiled by the Halifax, are published two weeks before the government’s Help to Buy and Lifetime savings schemes are launched, both aimed at helping people to buy a house.
The Halifax said one in seven young people expected to be renting a home for the rest of their lives, while two-thirds believed they did not earn enough to buy a house. A separate survey last week revealed that a quarter of neighbourhoods in England and Wales were off-limits to prospective homeowners, with average earnings below the level needed to buy a starter home.
Office for National Statistics data indicated that the average cost of an entry-level property had grown by nearly 20 per cent in the last 10 years, to £140,000.
In Yorkshire, the figure is estimated at £135,719, with a typical deposit of £19,462 - around ten months’ salary for an average earner.
Currently, one in five families in England live in private rented accommodation, while home ownership has fallen to its lowest level in 30 years.
Owner occupiers accounted for 62.9 per cent of households last year, the lowest proportion since 1985 and eight per cent lower than its peak of 70.9 per cent in 2003.
Meanwhile, the average age of the first-time buyer in Yorkshire has crept up from 27 in 1983, to 29 today.
Martin Ellis, a housing economist at the Halifax, said many young people felt they were running a “financial gauntlet”, by saving for a deposit, finding an affordable property in the right area and funding living costs.
He said: “It’s never too early to do some research to help build a better understanding of how much is affordable, the borrowing options available and calculating what’s achievable to help make owning a property more of a reality.” Self-employed people were among those making the biggest sacrifices to save for a deposit, another report found.
Nearly two-thirds did not know how they would finance the purchase, and one in three faced having to stop working for themselves, the mortgage lender Aldermore said.
Some 12 per cent said that they had taken on a second job to earn extra money, with nearly a quarter reporting they had cut back on holidays or on eating out.
Last week, the government backtracked on a controversial budget proposal to raise national insurance contributions for the self-employed, a move some commentators believed could have compounded their problems.
Currently, nearly half of young people without their own home are said to be living in private rented accommodation, and a third staying with family members - half of them without paying rent. However, 82 per cent said they hoped one day to be able to buy a property.
The government’s Lifetime ISA scheme, which is targeted at first time buyers, adds 25p for every £1 saved from next month.
Many young people feel they are running a financial gauntlet Martin Ellis, housing economist at the Halifax