Young people in Britain want to own their own home but many are pessimistic about their ability to ever do so, new research has found.
The struggle to get on the housing ladder is one of the biggest problems facing young people today, with a survey from the Building Societies Association (BSA) showing that 70% think this is a major issue.
However, overall the desire to own a home remains strong. Almost half, some 48%, of people aged between 25 and 34 today who aren’t on the property ladder say they want to own their own home within the next 10 years.
But many in this age group are highly pessimistic about their prospects of achieving home ownership even if they wait a decade and 41% think that the achievement of their dream is unlikely.
The research also found that there has been a significant drop in those who own their own home, down from 40% in 2008 to 33% today but 62% want to own their own home by 2028.
It shows that by 2028 far fewer want to be living in private rented accommodation, down from 31% today to 9%. Some 14% live in a property owned by a friend or relative but just 3% want to be in this position in 10 years.
The research found that high house prices, driven primarily by insufficient housing supply, is one of the root causes of the ability to buy a home with 76% of 25 to 34 year olds saying that raising a deposit is the biggest problem.
Some 46% said that access to a mortgage is an issue, 43% cited the affordability of mortgage payments, 29% job security and 18% concern that property prices may fall in the future. Some 15% voiced concerns about stamp duty costs, 12% were worried about finding the right property and 11% the complexity of the home buying process.
‘It is stark and worrying how gloomy many young people are about their chances of future home ownership. With the average age of a first time buyer standing at 33, this is the very group most likely to be considering buying. If they are right and their chances in 10 years are still bad the societal divide and economic impact already being felt can only grow,’ said Paul Broadhead, head of mortgage and housing policy at the BSA.
‘Without a massive push to build more homes to overcome the deficit of decades it is hard to see that things will improve. Mortgage lenders also have a part to play to break down the barriers. As part of this the BSA has just commissioned a project to explore the potential for intergenerational lending, unlocking some of the housing wealth of the baby boomers,’ he added.
