Over 5.5 million British people think that they will never be able to own a home due to rising prices and the cost of saving for a deposit to get on the housing ladder, new research suggests.
Some 33% of those who do not own a home believe they will never do so and 39% of potential first time buyers think they will have to rely on financial support from family to be able to buy a property.
The survey from online comparison site comparethemarket.com also found that the number thinking they will never own a home rises to 65% amongst 45 to 54 year olds, suggesting that a large cross section of British people have given up on the hope of home ownership.
Of those who expect to be able to afford a place of their own at some point in the future, some 36% think that they will have to partially rely on their family for financial support to purchase a house, whilst 3% said that they will rely entirely on their family. The survey report says that these statistics highlight the importance of family financing for first time buyers today.
The lengthy process of buying a home also seems to be putting off many who would want to purchase a house with 39% of respondents who expect to be able to afford a home at some point said that the complexity of the buying process may persuade them to delay or put them off buying their first home.
In addition, 44% cited concerns over hidden and additional costs as a point that could put off or delay them from buying a house, 22% expressed concerns over the responsibility of owning a house and a fifth were put off by having to deal with estate agents. As many as 15% feel that they don’t have time to look into home buying properly.
‘Home ownership has always been a great British aspiration but these statistics demonstrate the challenge first time buyer’s face in making that dream a reality. Whilst prices remain very high, it is clear that this isn’t the only hurdle,’ said Simon McCulloch, director of comparethemarket.com.
‘The whole buying process is intimidating, particularly to first time buyers. Fears around hidden fees, dealing with estate agents, lawyers, surveyors and mortgage companies are real and strong enough to put off people from trying to make a purchase,’ he added.
The site has launched a new First Time Buyer’s Guide which it hopes will help those trying to make sense of the system.