Belfast Telegraph

More people resigned to not buying a new home, says Halifax report

By Vicky Shaw

More young people are giving up the dream of owning their own home, with high house prices and low incomes seen as strong barriers to getting on the property ladder, a report suggests.

The proportion of people aged between 20 and 45 who are saving for a deposit to buy their own home has fallen by six percentage points compared with a year ago, to 43%, according to the Generation Rent report from Halifax.

The report said this fall "strengthens the view" that more people may be giving up on owning their home and accepting the idea of long-term renting.

Schemes such as Help to Buy have enabled people to get on or move up the property ladder with a low deposit, but while 53% of people said they believe the scheme has had a positive impact, 8% think it has had a negative impact and 39% do not know or are undecided.

The three most common barriers to home ownership that people who do not own a property gave were the size of the deposit needed, high property prices and low incomes.

People who do not own their own home said they would be willing to save for about five years and four months to save for a deposit, while people who are already on the property ladder would be prepared to save for around three years and seven months.

Some 79% of 20 to 45-year-olds surveyed thought banks do not want to lend to first-time buyers.

Figures from the Council of Mortgage Lenders showed the number of first-time buyers getting on the property ladder last year reached its highest levels since 2007. More than 300,000 people took their first step on the property ladder in 2014.

Belfast Telegraph