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78% believe they’ll never be homeowners

78% believe they’ll never be homeowners

Category: Mortgages
Author: Lieke Braadbaart
Date: 16/01/2018

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 It is now over 6 months old so the content may be out of date.

A survey of Brits aged 18 to 30 years old has revealed that 78% of this age group do not believe they will ever be in a position to own their own home. The main stumbling blocks that VoucherCodesPro uncovered are the deposit, earnings and credit history.

According to their research, British adults have an average of £6,700 saved up for their deposit. Considering the average house price stood at £225,021 in December, according to the latest Halifax house price index, this average savings amount is less than 5% – the minimum deposit percentage for most first-time buyer mortgages – of what could be required.

It's therefore understandable that 78% of those who don't believe they'll ever own their own home said it was because they could never save enough for a deposit. A further 71% thought the main problem was that they don't earn enough to be able to get a mortgage, while 52% cited their credit history as the main roadblock to their homeownership dreams.

The 37% living with their parents have the best chance of getting a deposit together and owning their own house, as they only pay an average of £220 per month in rent, compared to the average £625 paid by those who rent elsewhere. And yet of the 22% who do believe they'll own their own house one day, only 52% have actually begun saving.

"Many Britons want to own their own home for financial security and to be able to support their families," said George Charles, spokesperson for VoucherCodesPro. "It's sad to hear that so many British adults are convinced they'll never own their own home, but with deposits being so high, additional costs sneaking up on you and housing prices where they're at, we can see why so many feel this way."

What next?

If you're struggling to save up for a deposit, have a look at our savings Best Buys to find the top accounts you could use to increase your savings, or consider a lifetime ISA, which can be used for retirement or a first deposit and comes with a bonus from the Government.

If you think you've got enough for your first home, make sure to check your credit score, and improve it if necessary, before applying for a competitive first-time buyer mortgage.

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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