Younger Generation Pessimistic About Their Property Ownership Chances
As property prices continue to rise in many parts of the UK despite difficult market conditions, many first-time buyers (FTBs) have been forced to reappraise their standards and expectations when it comes to the property they can afford.
A recent study of over 2,000 UK prospective home owners aged between 23- and 38-years, carried out by housing developers L&Q, were clear that their attitude towards their first property was ‘realistic’.
73% of respondents view owning a property as their ambition in the future. However, 25% admitted that an inability to save anywhere near the minimum amount needed for a deposit of just 5% has deterred them from even attempting to become a property owner.
The average consensus of respondents predicted that they would be at least 35-years-old before they were in a position to acquire a property of their own. 40% believed that they would need to cut a huge array of luxuries out including their morning take-away coffee or gym membership in order to save at a quicker rate.
Overall, the report suggests millennials remain despondent when it comes to their feelings towards home ownership with many willing to sacrifice their dreams to gain a foothold on the property ladder. This includes waving goodbye to perceived luxuries like a garage or outside space.
Indeed, almost half (40%) believe they will not be able to achieve anything more than a single room property with many looking towards a studio or one-bedroom apartment.
Cathy Lloyd, Sales and Customer Services Director for L&Q, said:
“The research shows that millennials are knowledgeable about what they can and cannot realistically afford when it comes to the purchase of their first home, in terms of size, location and amenities.
“Interestingly, the priorities of those living around the country don’t vary too wildly.
“Across all regions, the priorities are transport links, ease of commute and proximity to family above all else – something which I’m sure will delight many a parent.
“Buying a property is a huge achievement and it’s good to know that younger generations are clued up with regards to the help that’s available from the likes of Help to Buy which can really make all the difference to those struggling to pull together a deposit.”
Whilst Help to Buy continues to thrive and Stamp Duty Land Tax obligations are removed for FTBs, it is clear that more needs to be done to help generate a more optimistic property picture amongst those trying to purchase property for the first time.
Do first-time buyers require more help?