There has been a significant fall in the number of first time buyers in the UK due to rising costs
There has been a significant fall in the number of first time buyers in the UK as the number of buyer investing in their first property has fallen by 24% since 1994 and the number of lone first time buyers have seen a more significant 45% decrease, new research has found.
The study from price comparison website MoneySuperMarket suggests that a large portion of British people are putting their dreams of buying a home on hold and instead using their savings (43%) for short term commitments such as holidays or travelling. Only 20% are saving towards home ownership, while 22% are putting money away for a rainy day rather than buying a home and 27% are saving for a holiday.
The research report says that this could be a result of the fact that home ownership has become increasingly more difficult over the last 20 years, with the average yearly salary accounting for only 11% of the average house price in 2018 compared to 23% in 1999.
The data also reveals that there has been a 54% increase in the amount of those renting in the 34 to 50 age bracket from 1996 to 2016, with 60% of 35 to 44 year old renters citing a preference for renting over home ownership and 41% stating that they weren’t earning enough to even consider saving for one.
People also say they have found themselves compromising on many aspects such as those related to location, budget and size of the property when looking at purchasing home. Most commonly, first time buyers found they had to compromise on the size of their property with 36% finding this to be the case, while 29% of those surveyed found they had to settle for a less preferable location.
Specifically, those in the West Midlands had to make the most concessions when purchasing their first homes. In fact, as many as 42% of first time buyers in the West Midlands found they had to compromise on location when buying their first home than those in London at 40%. Some 48% of buyers in the West Midlands also found they had to compromise on their budget, the most of any region in the UK. On the other hand, space was the biggest issue for Londoners, with 51% stating the size of the property to be their biggest compromise.
Consumer affairs expert at MoneySuperMarket, Kevin Pratt said it can be very disheartening for prospective buyers, especially younger ones, to look at the cost of buying a house. What used to be affordable 20 years ago is now proportionally double the investment, and accordingly there is a move towards favouring renting and even a lack of interest in saving towards a deposit.
This article is for information purposes only.
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