Almost two million young people do not think they will be able to “follow in the footsteps of their homeowning parents,” according to a poll from the HomeOwners Alliance.
Around 1.9 million aspiring homeowners between 18 and 34 do not expect to own a home, after the study by the home services firm found that 73% of this group said their parents owned a home, but only 48% of them thought they would be able to do so themselves.
The top reasons for not being able to own a property were high house prices (cited by 60% of those asked), saving for a deposit (44%), the ability to afford monthly mortgage repayments (33%) and getting approved for a mortgage (31%).
The survey comes at the start of 2024 New Home Week, the annual campaign run by the Home Building Federation.
Also, tomorrow Virgin Money and Halifax will introduce reduced mortgage rates for new-build customers, teaming up with Own New as a launch partner for its Rate Reducer product. For some homes, Virgin Money’s introductory two-year rates start at below 1%.
However, the HomeOwners Alliance survey points out that 20% of homeowners between 18 and 34 rely on the Bank of Mum and Dad, making this paring one of the country’s biggest lenders.
The report adds that 30-plus year mortgage terms “are becoming the norm” among younger people.
It finds that 38% of homeowners aged 18 and 34 have a home loan term of 30 years or more compared to 15% of UK homeowners overall.
HomeOwners Alliance chief executive Paula Higgins says: “The government has failed aspiring homeowners, and continues to degrade the life chances of young people by continually not building enough homes.
“This shortage of new homes has led to rocketing house prices, leaving aspiring homeowners dependent on Mum and Dad to bolster savings or by locking themselves into longer term mortgages which cost them more in the long run.”
“With the upcoming general election, a key issue will be how the parties plan to build more homes and provide much-needed support to first-time buyers.”
HomeOwners Alliance’s survey spoke to a weighted sample of 2,000 adults.
