Almost half of aspiring first time buyers in Scotland no longer believe they will be able to own their own home, new research has found.
However, just under a third remain confident that they can buy a property with one in three set to use the Government’s Help to Buy scheme to get on the property ladder, according to the study from the Bank of Scotland.
Overall, some 48% feel that they will never buy their own home, with less than a third, 29%, feeling confident about their future purchasing prospects.
The Bank found it surprising that the study found that 31% believe that it is normal to think that they will never own their own home. On the other hand, a significant proportion, some 17%, of non-home owners are concerned by this, as are 11% of parents who are concerned that their children will never be able to buy a property.
Of those living at home but aiming to buy a property, some 79% expect to be able to make their first purchase before they are aged 36 and 48% are aiming to do this between the ages of 26 and 30.
Some 41% believe that they will buy a home with a partner and 35% aim to use Help to Buy with 29% will save the deposit money they need to get onto the property ladder by working extra hours or getting an additional job.
Many aspiring home owners make the most of the Government’s 25% bonus on savings, which can go towards their first home, with a Help to Buy ISA. People can save up to £200 per month, however the minimum annual Government bonus is £400, meaning that you need to save at least £1,600 before the bonus can be claimed. The maximum government bonus you can receive is £3,000. To receive that, you need to have saved £12,000.
‘Attitudes towards home ownership are changing, with many people reassessing if and when they will make their first property purchase,’ said Ricky Diggins, network director for the Bank of Scotland.
‘However, many people still dream of owning their own place, and even though it is arguably harder to buy now than ever before, there is help at hand. Lots of people look to get help from their family, or partners, and are coupling that support with schemes like Help to Buy, to help them take that first step onto the property ladder,’ he added.
The research also found that 22% anticipate financial support from family members to help them buy their own home, and 15% of parents believe they will need to provide their children with substantial financial help to get them onto the property ladder.
Some 25% of parents are happy to help their children with the costs of buying a house. The younger generation of parents appear keener to provide a helping hand, with 46% of 18 to 24 year olds saying they will be happy to help their children buy a home, as opposed to just 21% of people aged 45 to 54, and 26% of those aged 55 and over.
Overall, just 6% of parents feel under pressure to help their children with the costs of buying a house.
