Nearly 1.9 million aspiring homeowners between 18 and 34 do not expect to own a home, after the study by the home services firm found that 73% of this group said their parents owned a home, but only 48% of them thought they would be able to do so themselves
Around two million young people do not think they will be able to “follow in the footsteps of their homeowning parents,” reveals a poll from the HomeOwners Alliance.
Nearly 1.9 million aspiring homeowners between 18 and 34 do not expect to own a home, after the study by the home services firm found that 73% of this group said their parents owned a home, but only 48% of them thought they would be able to do so themselves.
The top reasons for not being able to own a property were high house prices (cited by 60% of those asked), saving for a deposit (44%), the ability to afford monthly mortgage repayments (33%) and getting approved for a mortgage (31%).
The survey comes at the beginning of 2024 New Home Week, the annual campaign run by the Home Building Federation.
Also, tomorrow Virgin Money and Halifax will introduce lower mortgage rates for new-build customers, teaming up with Own New as a launch partner for its Rate Reducer product. For some homes, Virgin Money’s introductory two-year rates start at below 1%.
Also, Santander lifts the maximum LTV ratio on new build houses and flats to 95% on Tuesday, which means that these borrowers will need to find a 5% deposit to buy a home.
Nonetheless, the HomeOwners Alliance survey points out that 20% of homeowners between 18 and 34 rely on the Bank of Mum and Dad, making this paring one of the country’s biggest lenders.
The report adds that 30-plus year mortgage terms “are becoming the norm” among younger people.
It finds that 38% of homeowners aged 18 and 34 have a home loan term of 30 years or more compared to 15% of UK homeowners overall.
HomeOwners Alliance chief executive Paula Higgins comments: The government has failed aspiring homeowners, and continues to degrade the life chances of young people by continually not building enough homes.
She adds: This shortage of new homes has led to soaring house prices, leaving aspiring homeowners dependent on Mum and Dad to bolster savings or by locking themselves into longer term mortgages which cost them more in the long run.
