Young people increasingly giving up on buying property

Graham_Devon

Rocketing house prices and years without real-terms wages growth have prompted a growing number of younger people to give up the idea of ever owning their own home, according to a major report on attitudes to getting on the property ladder.

The proportion of people aged between 20 and 45 putting money aside for a deposit had been steady for three years but fell last year by six percentage points to 43%, according to the Generation Rent report from the bank Halifax.

In a blow to government hopes that its help-to-buy mortgage subsidy scheme had turned around attitudes, the lender said its report strengthens the view that more people may be abandoning the dream of home ownership and accepting the idea of long-term renting. It suggested lower levels of ownership may become “the new normal”.

I would assume that there would be a social impact based on this?

If fewer people have rooted ties to their local area and in some cases find themselves having to move at the will of the landlord, the "community" aspect will likely fade even more than it has done?

Looking at the survey, conducted by the Halifax, it appears we've moved past the point where the young feel it's actually worth trying to save a deposit. They are willing to save £33 per week towards a deposit and are willing to spend 5 years and 4 months saving for said deposit.

However, if saving £33 a week for 5 years 4 months still doesn't fund a deposit, it appears people are less likely to bother.

Much of the reason for this level of saving is based on the issue that they are already paying out large amounts of their income on housing by renting. So to put even more of their income towards housing (and saving a deposit) and go without other stuff for years is somewhat difficult.

http://www.theguardian.com/money/2015/apr/07/young-people-uk-increasingly-giving-up-owning-home-halifax-survey

System

Respondents were also unwilling to save more than £10,000 for a deposit, far short of the sum needed in many areas of the country, especially those that have seen soaring house prices. Non-homeowners said they would be willing to put money aside for about five years and four months to save for a deposit at £33 a week.

Has saving £33 a week ever been enough to save a deposit? I saved 10 times that amount per week when I was saving for mine. These people are royally deluded.

stator

Joeskeppi wrote: »

Has saving £33 a week ever been enough to save a deposit? I saved 10 times that amount per week when I was saving for mine. These people are royally deluded.

It's easy to save when your rich

CLAPTON

stator wrote: »

It's easy to save when your rich

even living on state benefits you can save 33 per week : it may require cancelling SKY and cutting back on cigarettes and lager but some may feel that's a price worth paying

lisyloo

Has saving £33 a week ever been enough to save a deposit?

I agree, but lots of young people don't have much money left after paying rent.
Let's not get diverted into "they shouldn't have an iphone" - there is a serious issue here.
I don't know your circs but I suspect you had much lower accomodation costs and possibly better opportunities as well. I'm gen X and I walked into a good job after graduating and could easily afford to buy a 3-bed semi with my partner (I'm was just an average grad with a 2:2).
Things are different now and it's not all just about making sacrifices.

somethingcorporate

Buying a house takes dedication and sacrifice. £33 a week for a couple of years is neither dedication or sacrifice (or much money!!).

lisyloo

even living on state benefits you can save 33 per week

Can you clarify.
If you don't have kids and aren't disabled, then you're going to struggle on state benefits - so explanation & costs please.

it may require cancelling SKY and cutting back on cigarettes and lager but some may feel that's a price worth paying

I disagree.
I think things are different - higher rents and lack of good jobs are two major factors.
I don't think thrift is the only problem and if you did the maths I think you'd see it still doesn't add up i.e. the items you mentioned wouldn't be enough for a deposit either even if you did smoke and drink and watch sky (a bit patronising TBH).

wymondham

Not surprising really. When I bought in 1990 my whole house cost as much as the deposit these days (£36k), and that is only in 25 years... The rate of rise is barmy, no wonder the youngsters feel like its just an unobtainable dream. I know I couldn't afford to buy now if starting out...


The funny thing is the more the Government try to 'help' the more they push up prices. If they'd step back and stop fiddling and let the market decide a value things might be less squewed than current!

cells

Rents are too high which means prices are too high

currently crappy 3 bed ex council flats in z2 are £2000+ and add council tax and utilities and its crazy

You need one £40k wage just to pay the rent and the other housing bills

PasturesNew

CLAPTON wrote: »

even living on state benefits you can save 33 per week : it may require cancelling SKY and cutting back on cigarettes and lager but some may feel that's a price worth paying

Not if you only get £72/week. You're on about those who have the Golden Tickets (kids).... with the Bonus Win (flakey, undefined, put it on only when somebody's watching, disabilities).

stator

CLAPTON wrote: »

even living on state benefits you can save 33 per week : it may require cancelling SKY and cutting back on cigarettes and lager but some may feel that's a price worth paying

The rich comment is referring to Joeskeppi who claims he saved £330 per week.
But I don't accept that if you were on benefits you could save £33 per week. HB + JSA wouldn't cover the livings costs for me, and no I don't have Sky or ciggies or any other bad habbits.