Over 250,000 non-home owners in the UK appear to have given up on the dream of owning their own property in the past year alone, with prices the top concern, according to new research.
It is the first time in five years that there has been a drop in the number of non-home owners who aspire to own their own place, according to the 2017 annual survey from the HomeOwners Alliance and BLP Insurance.
The data shows that in 2013, when the first survey results were published, some 65% of non-home owners aspired to buy and this number increased every year, peaking at 73% in 2016. But now the numbers have fallen to 71%.
The research says that this equates to around 253,166 people across the country who have given up on ownership in the past 12 months.
It suggests that house prices, saving for a deposit and availability of homes to buy are the biggest issues and are worsening with time. Among aspiring first time buyers some 86% say house prices are their most serious concern, up 3% in the past year, while 85% say saving for a deposit as a serious problem, up 1%, and 80% worry about the availability of homes, up 2%.
The findings reveal that concerns about home ownership are rising in nearly all areas of the country. People in London are the most concerned with 87% saying house prices are a problem but the same percentage is found in Wales and in the East of England it is 85%.
Some 81% of people in London are worried about supply while 82% of those in the South West are similarly concerned. Repaying a mortgage is a top concern in Yorkshire and Humber and in Northern Ireland with 68% in both regions mentioning it.
Getting on the housing ladder is also a concern with 89% overall saying it is a problem, up from 82%. The survey report points out that the rise in average prices over the last year of 4.5% it considerably more than the 2.6% average rise in earnings.
However, the research does show that concerns are receding on issues such as negative equity and the ability to move up the housing ladder. Some 42% of UK adults say they are concerned about negative equity, compared to 44% last year, 49% in 2016 and 64% in 2014.
Meanwhile, concern about the ability to move up the ladder has softened, down 4% in the past year to 58% compared to 65% in 2014.
‘These latest findings show that the housing crisis is deepening across the UK. This in turn is impacting on people’s aspirations to get on the property ladder. While we are used to stories about people not being able to buy a home until they are 40, the story has taken a turn for the worse with people increasingly giving up altogether on the dream of home ownership,’ said Paula Higgins, chief executive of the HomeOwners Alliance.
‘While aspiring home owners’ concerns about house prices, saving for a deposit and housing supply grow, the change in political rhetoric around home ownership and a lack of new homes being built in the last year, plus the removal of flagship Government schemes like the Help to Buy mortgage guarantee, appear to have had a negative impact on consumer attitudes,’ she explained.
‘People are feeling less optimistic about their chances of buying their first property. With the election approaching, it is vital that housing is placed at the forefront of the policy agenda and that whatever party is elected, it takes serious steps to address the growing concerns of aspiring home owners,’ she added.
