Research from Bluestone Mortgages has revealed that young people (those aged 18-34 years old) in particular are feeling immense pressure over their ability to save for their first home.
51% of 18-34 year olds are worried about the crisis limiting their capacity to save for a deposit – the equivalent of 7.5 million – and three fifths (59%) are generally worried about their future ability to get onto the property ladder. On average, this group expects to be £146 worse off each month as a result of the rising cost of living.
These concerns have prompted 18-34 year olds to look into making significant changes to their lifestyles to try and mitigate the additional expenses they will soon face. Many are committing to reducing energy consumption (52%) and eating out less often (48%), as well as cancelling subscription services (39%) and holidays (31%). A quarter are even looking into moving back in with family (25%) to better cope with financial pressures.
Steve Seal, CEO of Bluestone Mortgages, said: “The cost of living crisis is adding to the stress young people face getting onto the property ladder. Combined with the Help to Buy scheme having recently closed to new applicants and lenders withdrawing from the market due to extreme market volatility, prospective first-time buyers are clearly worried about their ability to make their home ownership dreams a reality.
“With no plans from the government to replace the scheme, we, as an industry, must collaborate and make a determined effort to reassure first-time buyers that there are other options available to buy their first home, including Deposit Unlocked and Shared Ownership. Looking ahead, it’s vital that lenders and builders work together to assist borrowers in achieving their home ownership ambitions in a post Help-to-Buy environment.”