Halifax has reported that 43% of Britons who currently rent or live at home don’t think that they will never buy their own property.
The research, conducted in partnership with YouGov, also found that of those currently renting, around three in 10 (29%) think it is now normal for people to do so for life.
That trend shifts with age though, as only 14% of 18-24 years old view renting for life as normal, compared to 32% of 35 to 44 year olds. Youngers generation appear to be more optimistic generally, with 57% of 18-24 years old believing they will one day buy a property. This falls to just 28% amongst 35 to 44 year olds.
Despite this pessimistic view of home ownership, over the last decade the number of first-time buyers in the UK has actually increased, from 72,180 in the first half of 2009, to 170,060in the first half of 2019. The average age of a first-time buyer has risen slightly from 30 to 31 over the same period.
First-time buyers accounted for 51% of the UK’s mortgage market last year, the first time this has happened since 1995.
Amongst non-home owners who believe they will buy at some point in future, mortgage affordability is seen as a significant barrier by two thirds of people (66%), despite the current period of low interest rates and strong wage growth.
A similar proportion (64%) highlight that saving a deposit is a big challenge. Deposit amounts for a first home have risen on average by 52% over the past decade. The average deposit for those buying their first home is now £41,099 – 18% of the average house price of £224,709. 10 years ago, the average first-time buyer paid just £138,413 for their property with a deposit of £27,059 (20%).
Of those who believe they will buy one day, 35% say they plan to use the Help to Buy scheme to get on the housing ladder, while just 6% expect to buy through a shared ownership scheme.
Meanwhile, 28% expect financial support from their family to purchase a property, with 23% planning to rely on future inheritance. 45% expect they will only be able to buy with a partner.
35% of parents say they are happy to help their children with the cost of buying a home, while 25% believe their children will never own a property.
The research also revealed the sacrifices that people are willing to make to become a homeowner. 35% say they would give up living in the location where they ideally want to buy, and 38% would comprise by purchasing a smaller property. Meanwhile, 27% said if they ever own a property it is unlikely to be their ideal home.
Russell Galley, managing director at Halifax, said: “Taking that first step onto the property ladder remains a rite of passage for many. The financial hurdle of saving enough for a deposit might feel like a daunting or at times near-impossible task, but there are a number of options out there, including government schemes and family support mortgages, to help put first-time buyers on the right track.
“Last year, first-time buyers accounted for the majority of the mortgage market for the first time in well over 20 years. This shows that with the right support and a few sacrifices, home ownership can remain an attainable goal.”
