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Many abandond their efforts to save
A survey of first-time buyers reveals that more than 80 per cent of adults aged below 35 consider it to be 'unrealistic’ to expect to own their own home. This has resulted in many renters deciding to ‘treat themselves’ instead.
The figures show that around a third of would be first-time buyers have given up hope of ever owning a property and have, therefore, spent what they had originally saved for a deposit on other items including holidays, cars and other luxuries.
Three quarters of the 2,000 under-35s said they were “nowhere near” getting on the property ladder with seven out of 10 saying they guessed that it will be five years or more before they could turn their dreams of being a home owner into reality.
A fifth of those saving deposits had ended up abandoning any attempts to continue saving and were spending the money. It was found that only 30 per cent of would be first time buyers had managed to leave their savings untouched.
The biggest reason for dipping into the saving was the need to use their money to cover day-to-day bills. A third decided they needed a holiday and around 15 per cent said they would never try to get on to the property ladder again. Of those left, a third said they were still saving and a figure of one in six people said they were exploring other ways of becoming a home buyer.
The housing association which commissioned the study L&Q’s assistant director said
“It’s clear that, despite signs of recovery, many of the younger generation view the prospects of owning their own home as an unlikely dream.
“The study shows many are disheartened in their attempts to get on the property ladder and have abandoned efforts to save for a home altogether.
She added: “Results revealed many people now see becoming a home owner as so unrealistic that they’ve decided to splash money on temporary luxuries or intangible things, further reducing their ability to buy property in the future. Shared ownership has historically been there to help support low-income families purchase part of their home, but is now increasingly being seen as a way to get on to the property ladder in London.’’
The average person thought 33 was the earliest age people could hope to get on the property ladder. Half of the respondents said they had expected to own a home by now.
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