48% of young Brits think it’s harder than ever to get on the property ladder, with one in 10 prepared to leave the UK in order to buy their own home, Halifax has found.
New research from the lender uncovered the attitudes of young people who don’t own a property, revealing that a quarter of 18-34-year-olds think the only way they’ll manage is by inheriting the cash.
Eight out of 10 feel that a lack of affordable property is keeping home ownership out of reach, and as a result 14% think they’ll need to rent forever. However, first-time buyers end up on average £651 a year better off buying than renting.
Despite the number of first-time buyers reaching a 10-year high of 339,000 in 2016, half of 18-34-year-olds don’t think home ownership is a realistic option for their generation – with 65% saying they don’t earn enough to afford it.
Deposits remain too unrealistic and expensive for 52% of young people as the average age of those buying their first home has crept slowly up to 30.
More than half of young people feel that the average house price for a first home in their area is currently unrealistic for them, causing generation rent to think about relocating to boost their chances of buying.
22% of 25-34 year-olds would move to a cheaper area and even more of their younger counterparts aged 18 to 24 would be prepared to pack their bags for a bargain home elsewhere in the UK.
The average deposit put down for an average first-time buyer home is £32,321, rocketing to £100,445 in London. Northern Ireland has the lowest at £16,695 – less than half of the average deposit needed in the South East (£47,472).
Martin Ellis, Halifax housing economist, said: “Even with the highest number of first-time buyers in the last decade in 2016, many young people still feel they are running financial gauntlet – saving for a deposit, finding an affordable property in the right area and managing to fund living in the meantime.
“It’s never too early to do some research to help build a better understanding of how much is affordable, the borrowing options available and calculating what’s achievable to help make owning a property more of a reality.”
Although aspiring homeowners could begin gravitating towards the UK’s more affordable areas to get on to the property ladder, 22% feel that home ownership is a thing of the past.
Even if they have managed to raise a deposit, 33% feel mortgage criteria is too difficult for them to meet.