As the cost of living crisis bites and inflation continues to soar, new research reveals that people aged 18 to 34 are feeling what a mortgage firm calls “immense pressure” over their ability to save for their first home.
Some 51 per cent of 18 to 34 year olds are worried about the crisis limiting their capacity to save for a deposit and 59 per cent are generally worried about their future ability to get onto the property ladder. On average, this group expects to be £146 worse off each month as a result of the rising cost of living.
These concerns have prompted 18 to 34 year olds to look into making significant changes to their lifestyles to try to mitigate the additional expenses they will soon face.
Many are committing to reducing energy consumption (52 per cent) and eating out less often (48 per cent), as well as cancelling subscription services (39 per cent) and holidays (31 per cent).
A quarter are even looking into moving back in with family to better cope with financial pressures.
Steve Seal, chief executive of Bluestone Mortgages, comments: “The cost of living crisis is adding to the stress young people face getting onto the property ladder. Combined with the Help to Buy scheme having recently closed to new applicants and lenders withdrawing from the market due to extreme market volatility, prospective first-time buyers are clearly worried about their ability to make their home ownership dreams a reality.
“With no plans from the government to replace the scheme, we, as an industry, must collaborate and make a determined effort to reassure first-time buyers that there are other options available to buy their first home, including Deposit Unlocked and Shared Ownership.
“Looking ahead, it’s vital that lenders and builders work together to assist borrowers in achieving their home ownership ambitions in a post Help-to-Buy environment.”
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As a family we have a plan…. But it involves another family looking for a new home 😬, it’s a tough world out there, MY family comes first so selling a property is an easy decision.
Do what many of us baby boomers done, start saving from 13, yes 13, the morning and evening paper rounds, those paper rounds gave me excellent training for later life, and I loved doing them even in the wind, rain and snow of the 60s
I was 13 during the big freeze of 1963 and on several freezing mornings went to the newsagents to collect my papers only to find the delivery van hadn't made it- so an early start but no payment as no papers to deliver.
I think that would now be classed as a zero hours contract which is banned. I wonder if I could now dig up the old newsagent and sue him!
PS. As a lifelong non smoker I was never subjected to spot checks at school and supplemented my paper round earnings by buying a 20 pack of cigarettes and selling them to the smokers individually. They avoided confiscation and I made a healthy profit!
Stay Renting they said forgot to mention they have made your Renting unaffordable by a Mammoth of Regulation and tax grabs.
Shared ownership they are also suggesting they must really hate you, you wouldn’t wish it on your worst enemy, what a con goodness me they must think you haven’t the IQ of a hen.
Hmmm not looking very good is it? If only there was a political party with the right policies to sort out this mess. Well sadly there isn't, and its probably too late anyway for at least a generation.
Homeownership is only out of reach for a while. Not meeting mortgage affordability criteria right now is probably the biggest favour young people will ever experience. Buying into a falling market can leave people trapped with negative equity for years.
Having longer to save or for new relationships to form or fail will put people in a much better position when everything stabilises.
One certainty is that the government will do everything they possibly can to push as many people as possible into home ownership, purely because they then don't have to give them any support towards housing costs.
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