Millions of Britons are resigning themselves to the possibility of never owning their own home – with many people left with little alternative but to rent for the rest of their lives.
According the study from Aviva UK & Ireland General Insurance, 27% of UK adults in this country believe that they will never be in a position to buy their own property, citing affordability as the main issue preventing them from buying property in their desired area.
The study found that homeownership remains a top priority for many people, but for some the decision to rent is not always about finances and more about convenience, with many people opting to rent because of the flexibility it offers.
The research, carried out as part of Aviva’s ‘Home’ report series, shows that those looking to buy their first home expect to save for four years and four months on average, in order to build up an adequate deposit, but many will be required to rent while saving for a deposit.
Despite property ownership becoming more difficult as UK house prices rise, under-45s believe homeownership will only become more important in the next 20 years, according to Aviva’s Changing Households report.
However, despite the recent slowdown in the rate of house price inflation, the house price to earnings ratio remains around 5.5 times against a long term average of 4.25 times as a result of soaring house prices and years without real-terms wage growth, which means that a growing number of younger people are now giving up on the idea of ever owning their own home.
Tony Williams of the Building Value property consultancy told Reuters last week that “a large proportion of 25 to 45 year olds will be permanent tenants rather than buyers”.