Young people appear to be abandoning hope of becoming homeowners with more people aged between 25 and 34 saying they are putting away money for a holiday (25%) than saving for a deposit on a house (20%).
Despite property prices losing some ground in recent months, only one in six of this age group intends to buy a property in the next year.
With the cost of living remaining high, the tightening of mortgage lending criteria coupled with the help-to-buy scheme ending and a fluctuating market, consumers are becoming disillusioned with the house-buying dream.
However, rather than being saddled with a mortgage at a time when interest rates have risen significantly in the last year and with inflation at near 40-year highs, one in seven admit they prefer to rent than buy.
But with the UK rental market also reaching breaking point, many are caught between not being able to save for a home and not being able to afford a home.
Despite the scrapping of the Affordability Test last year, mortgage lenders still impose very demanding terms to show affordability employment, salary and other outgoings. Sadly, paying your rent each month does not give those renting any credit with lenders for your suitability to take on and service a mortgage -often renting a property is more expensive than owning one with the government’s own figures suggesting half of renters could afford a mortgage and thousands are being denied the chance to get on to the property ladder.
Almost a third (31%) of young people say the biggest barrier they face is saving enough money in the first place for the deposit. But mortgage rates (26%) and fluctuating house prices (23%) are also key factors holding them back.
Far fewer young people - 10% compared to 25% of all those surveyed by Raisin - have the funds available to put down a deposit without needing to save.
And, with finances coming under increasing pressure as the cost of goods and services soars, almost two-thirds (64%) of 25-34-year-olds - compared with almost half (49%) of all demographics - are unable to save as much money to buy a home since the start of the year as they could in 2022.
Buying a property takes time, with 32% of homeowners saying they took up to three years to save their deposit – rising to 74% among young people who took up to four years to do so – but 30% of us expect that our present abode will be our ‘forever home’.
For those trying to put together a deposit, with interest rates past 4% now is the time to bag a high-interest deal on longer-term accounts but it will invariably mean tying yourself into a longer-term deal.
Despite property prices losing some ground in recent months, only one in six of this age group intends to buy a property in the next year.
With the cost of living remaining high, the tightening of mortgage lending criteria coupled with the help-to-buy scheme ending and a fluctuating market, consumers are becoming disillusioned with the house-buying dream.
However, rather than being saddled with a mortgage at a time when interest rates have risen significantly in the last year and with inflation at near 40-year highs, one in seven admit they prefer to rent than buy.
But with the UK rental market also reaching breaking point, many are caught between not being able to save for a home and not being able to afford a home.
Despite the scrapping of the Affordability Test last year, mortgage lenders still impose very demanding terms to show affordability employment, salary and other outgoings. Sadly, paying your rent each month does not give those renting any credit with lenders for your suitability to take on and service a mortgage -often renting a property is more expensive than owning one with the government’s own figures suggesting half of renters could afford a mortgage and thousands are being denied the chance to get on to the property ladder.
Almost a third (31%) of young people say the biggest barrier they face is saving enough money in the first place for the deposit. But mortgage rates (26%) and fluctuating house prices (23%) are also key factors holding them back.
Far fewer young people - 10% compared to 25% of all those surveyed by Raisin - have the funds available to put down a deposit without needing to save.
And, with finances coming under increasing pressure as the cost of goods and services soars, almost two-thirds (64%) of 25-34-year-olds - compared with almost half (49%) of all demographics - are unable to save as much money to buy a home since the start of the year as they could in 2022.
Buying a property takes time, with 32% of homeowners saying they took up to three years to save their deposit – rising to 74% among young people who took up to four years to do so – but 30% of us expect that our present abode will be our ‘forever home’.
For those trying to put together a deposit, with interest rates past 4% now is the time to bag a high-interest deal on longer-term accounts but it will invariably mean tying yourself into a longer-term deal.
Category
🗞
News