The average prospective buyer now predicts they will be 37 years old by the time they get their first home.
This compares to first time buyers from 2020 who, on average, secured their first home at age 32.
The research, from HSBC online bank First Direct reveals that 77 per cent of prospective home buyers are concerned about their ability to get on the property ladder, and with inflation at a 40-year high of 10.1 per cent their prospects are worse than before.
The majority of prospective buyers (86 per cent) identified the cost-of-living crisis as a notable obstacle to getting on the ladder, with not being able to save as much for a deposit cited (59 per cent) as a major reason for any delays to their plans.
The survey of 2,000 first time buyers and existing homeowners across the country also showed that the average first time buyer will take 7.5 years to save enough money for a mortgage deposit. This highlights the critical need for accessible FTB-led mortgage products, as existing homeowners surveyed took on average only five years to secure their first home.
When it comes to funding this costly purchase, some 28 per cent people who are waiting to get on the ladder believe the only way they’ll be able to secure a home is through an inheritance – which they are yet to receive.
Most first-time buyers (71 per cent) intend to use their savings, and 35 per cent are planning to use government programmes such as the help to buy/shared ownership scheme.
Pooling assets with a partner, close relative, or friend can be an alternative way to secure the cash needed for a mortgage; However, more than half of those who currently own a property did so without the assistance of a partner or sibling.
The research showed that first time buyers on the other hand, are sceptical about their ability to buy a house on their own, with only 35 per cent citing this as a financial possibility, implying that a significant majority are unable to shoulder the financial burden alone.
First Direct chief executive Chris Pitt says: “Getting on the property ladder is a distant dream for many today. The rise in house prices relative to incomes is well documented, as is the difficulty in saving for a deposit while at the same time paying rent. What this study shows is the time it takes to save and realise the dream of home ownership – it is a long time and getting longer. The state of the economy will only make this situation worse.”
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You'll rent everything and you'll hate it but tough luck
I'm not convinced buying would be a sensible move for most young people for the next few years. With the totally inept government we currently have and the prospect of a decade or more of a Labour government I can see a repeat of the falling property values and negative equity of the 1990s. Hundreds of thousands of people were trapped in homes that were far too small. Being unable to sell for enough to clear the mortgage was fairly standard. Being unable to accept a job promotion to another town or start a family was commonplace.
At least with renting it's relatively quick and easy to move house.
For those of us that can remember the 90s Jo you are correct, but people have short memories, many were not born or just babies in the 90s.
Jo - I see the logic but they would be in real danger of never owning, the longer someone rents the more likely they will never leave. The elephant in the room is the group of current long term renters who will retire as such, how are they going to pay ever increasing rents on a meagre pension? That is the rental tsunami to come.
You are correct Simon there is a tsunami to come, but that is not of our doing or come to that our problem
Most youngsters ( in my experience ) prefer renting to buying , it's more flexible and they can move without a huge mortgage round their neck
We were the generation that matured in our early 20s because we had to, now they mature in their 30s, if even then, most do not want responsibility or commitment.
Simon my retired HMO tenants are better off than they ever have been. Universal credit pays their rent and the state pension pays the more than they ever earned when working. I think you’re looking at this from a middle-class perspective.
Jim Haliburton
The HMO Daddy
You’re correct now I think of it, but coming from a dirt poor upbringing I have always aimed to live in my own home, beholden to no one and in an area of my choosing (ie very nice). When you rent that is not always possible, and my sharing facilities days are long behind me from when I left the Army 💂🏻♀️
I don't see that much has changed. I left home in the early 80s to go rented. It wasn't until I met my now wife that I could afford to buy with a joint income. She had savings and I sold my car to get the deposit. Other people were jointly buying with friends to get a foot on the ladder back then as well. It may be that people are pairing off later in life so are buying at an older age.
I got married at 27 in 81, most of my friends had already married, some in fact already on their second marriage by then, I think generally now people enter long term relationships and marriage 10 yrs later, many don't start a family until late 30s early 40s, times change
Means less Rental properties during Increasing demand, and Govt are standing on the track and can't see the Train coming !
Andrew, that’s my take on it as well at least 10 years younger getting married.
Many were already pregnant as they didn’t have so many contraception options or termination I suppose.
Housing was cheaper and so was renting. They didn’t have stupid Computers / internet Contracts to waste money on and destroy their lives, or have their personal lives controlled by the State. They didn’t have sky sports or mobile phone to waste they money on every month. Housing wasn’t burdened with rules and Regulations costing thousands making renting unaffordable.
There was no licensing Schemes to robbing landlords of millions of £’s in every London Borough.
There was hardly any single parents everyone knew what sex they were and who fathered the Child, very little State Benefit or no universal credit or housing allowance as I remember it. There was no 3% surcharge SD preventing your landlord from offering you affordable rents but the same for everyone about 2.5%.SD.
There was no stupid buy 2 let Mortgage’s they were for people to buy their own home and had MIRAS, but proper Commercial Bank loans for second homes usually 8% for landlords. So in 40 / 50 years what have we achieved ?.
People were far happier back then and Socialised with their neighbours, all this Government invented Stress wasn’t there, now you can live 20 years in your house and not know the neighbours either side of you and not be afraid to ask each other where you were from without being offended or classed as a racist it was normal conversation very sad really.
So yes getting married much later or Partner hopping and the State rears your Children leading to a more broken community.
I'll add to your list COFFEE , I was waiting for someone at Norwich train station yesterday morning so I thought I 'll have one of those Starbucks coffees, my surprise when the guy asked me for £4.75, madness ! I can get tea and a bacon bap for less than that at a roadside catering van
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