The ever-growing gap between incomes and house prices continues to rocket, leaving a rising number of young people giving up on the idea that they will ever own their own property.
According to research from the Halifax, 48% of 18-34 year olds feel it is harder than ever to get a foot on the housing ladder. In fact, 25% of people in this age bracket feel the only way they will make it onto the ladder is if they inherit the money.
Challenges
One in five questioned said that homeownership is a thing of the past. This adds weight to the theory that many people are giving up on owning property and instead renting for more long-term periods.
80% said that the lack of affordability was their main barrier to homeownership, with 14% saying they will rent forever.
Deposits remain unrealistic for 52% of tenants asked and the average age of those buying their own home has risen to 30.
More young people giving up on homeownership
Deposits
Overall, the average deposit put down for an average first-time buyer is £32,321. This figure rises to £100,445 in London!
By region, average house prices as shown in the Halifax research are:
London-£402,692
South East-£272,777
South West-£200,465
East Anglia-£196,367
West Midlands-£159,732
East Midlands-£153,779
North West-£144,367
Scotland-£137,188
Yorkshire-£135,719
Wales-£133,730
North-£124,117
Northern Ireland-£115,269
Martin Ellis, Housing Economist at the Halifax, said: ‘Even with the highest number of first-time buyers in the last decade in 2016, many young people still feel they are running financial gauntlet-saving for a deposit, finding an affordable property in the right area and managing to fund living in the meantime.’[1]
[1] https://www.landlordtoday.co.uk/breaking-news/2017/3/forever-renters-young-people-increasingly-giving-up-on-home-ownership