The number of young people looking to buy a first home has remained similar year on year at 36% compared to 34% in 2012, according to the third annual Post Office House Buying Habit report.
But the number who have no intention of buying has doubled over the same period from 5% to 10%, suggesting a widening gap between these two groups.
However, it is not all doom and gloom with many would be buyers adjusting their expectations over recent years and making compromises or sacrifices in order to take the step onto the first rung of the housing ladder. Over half are willing to give up their weekend social life to save for a deposit.
This year’s research figures reveal the number of young buyers prepared to make certain compromises has actually fallen over the past year, suggesting a renewed sense of consumer confidence amongst this segment of the market.
Some 44% of would be buyers are willing to buy a home which requires further work before they are fully satisfied with it. However, location remains a priority and the number who would sacrifice living in a trendy area has fallen from 38% to 35%. The number who would consider moving away from family has fallen from 29% to 26%.
These compromises vary across the country. Londoners, with their tribal loyalty to north or south of the river, live up to their reputation with only a quarter of those living in the city willing to reconsider living in a trendy location compared with 35% nationally.
‘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,’ said John Willcock, head of mortgages at the Post Office.
‘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,’ he added.
The survey also 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 29% of young men consider buying property a good financial investment.
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 with 57% willing to give up takeaways and 51% to stop going out at the weekend. Some 43% would consider cutting back on their weekly food shopping and 14% would forego saving into a pension in order to put a little more aside for a deposit.
‘While older generations are likely to have purchased a home at a young age, today’s 18 to 34 year olds find themselves in a very different position, counting every penny in order to acquire those essential property pounds,’ explained Willcock.
‘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,’ he added.
