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Home-ownership out of reach for many millennials

Home-ownership out of reach for many millennials

Category: Mortgages

Updated: 22/02/2016
First Published: 22/02/2016

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Do you have dreams of owning your own home? While it's the ultimate goal for many, some fear they'll never be able to achieve it, with a growing number of people expecting to remain off the ladder.

The research, from online investment platform rplan.co.uk, shows that 9% of millennials (those aged 18-34) don't expect to ever buy their own home, a figure that rises to 11% among those aged 25-34. Even those who are more confident in their home-buying aspirations think they could be waiting a long time to get there, as while 40% expect to buy their own home by the age of 30 and another 20% by the time they're 35, a further 17% believe it won't happen until they're 36-50 years-old.

Much of this could be explained by the financial pressures of the millennial generation, the report noted. Of the 72% who don't live at home, 2.3% have to take on extra credit in order to cover their monthly living expenses, averaging £190.63 a month. A further 31% accept cash from their family to help with the cost of living, at an average of £229.50 per month.

The research "reveals the financial difficulties faced by a substantial minority of millennials", said Nick Curry, director at rplan.co.uk, so it's little wonder that so many fear they won't be able to get on the housing ladder. Given the level of financial hardship they're facing, it'll be difficult to save up for that all-important deposit, which is why it's so important to take advantage of any help available.

What about the Help to Buy ISA? This is a savings product designed specifically for first-time buyers and could give your savings a definite boost, with the Government providing a 25% bonus to top-up your house deposit. Then it's all about finding the right mortgage deal, and with average rates still falling, there's never been a better time to get in on the action.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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