36% of non-homeowners aged 18-34 would like to get on the property ladder in the immediate future and are making large sacrifices to achieve this, according to the third annual Post Office House Buying Habit report.
The number of young people looking to buy a first home has remained similar year-on-year (36% vs. 34% in 2012). However, the number who have no intention of buying has doubled over the same period (from 5% to 10%).
The research figures reveal the number of young buyers prepared to make certain compromises has actually fallen over the past year, which Post Office believes suggests a renewed sense of consumer confidence amongst this segment of the market.
Would-be buyers are still open to the idea of a ‘starter home’ which requires further work (44%) before they are fully satisfied with it. However, location remains a priority; the number who would sacrifice living in a ‘trendy’ area has fallen from 38% to 35%, while the number who would consider moving away from family has fallen from 29% to 26%.
These compromises vary across the country. Only 25% of those living in London willing to reconsider living in a trendy location (compared with 35% nationally).
John Willcock, head of mortgages at Post Office, said: “For many people owning their own home is a dream they are determined to make a reality, and our report highlights the lengths some will go to. Since the recession in 2008, people have taken extra steps to save money for a deposit. However, the launch of the government’s Help to Buy scheme and a raft of affordable loans on the market look to have rallied optimism amongst first-time buyers.”
The survey reveals that young men and women have different motivations for getting on the housing ladder. Of those young women looking to buy, 30% are driven by the desire to settle down and 30% are tired of renting – while young men consider buying property a good financial investment (29%).
In addition to the compromises some buyers are willing to make, many are also prepared to streamline their lifestyle to save for a deposit. However, the number who would consider this has gradually fallen year-on-year.
Food and fun are the first things to go, including takeaways (57%) and going out at the weekend (51%). Furthermore, 43% say they would consider cutting back on their weekly food shopping. When pushed to it, more than one in ten (14%) would forego saving into a pension in order to put a little more aside for a deposit.
Willcock added: “While older generations are likely to have purchased a home at a young age, today’s 18-34 year olds find themselves in a very different position; counting every penny in order to acquire those essential property pounds.
“At the Post Office we want to do all we can to help young people who are saving to own their own home. Our broad range of products, some of which only require a 10% deposit, are designed to suit every possible situation and ease the difficult financial burden that can come with purchasing a new home.”