The number of young people saving toward house purchasing deposits has fallen, with many in their 20s and 30s, and even early 40s, now believing they will never get onto the property ladder.
Halifax’s latest influential Generation Rent report shows that only 43% of renters are currently saving toward a property purchase, while 57% are planning to rent long-term.
This comes despite the level of first-time buyers climbing to its highest rate in eight years in 2014, reaching 311,500 new buyers, with an improving economy and Government schemes such as Help To Buy attempting to help people onto the property ladder.
London has the lowest rate of young homeowners, with only 39% of 25-45 year-olds in property they own, and 82% of the capital’s renters – the highest in the UK – expressing a fear that they will never own a property.
In the North West, 47% of 25-45 year-olds own their property, but even in that region 71% of renters – the lowest in the UK – fear they’ll never own.
In Scotland these figures are 48% and 75% respectively and in Wales 41% and 78%.
Halifax data shows that those planning to buy are willing to wait an average of 5.35 years to get on the property ladder, whereas in fairly recent times homebuyers spent an average of only 3.6 years saving.
The number of people planning on staying in the rental sector for an extended period means the assumption that “Britain is obsessed with home ownership” may require re-evaluation – and that rental is now the long term option for many people.
The report gathered information from more than 40,000 20 to 45-year-olds and 4,000 parents with offspring aged between 20 and 45 and is the largest research project of its kind in the UK.