The number of young people looking to buy a first home has remained similar year-on-year (36% vs. 34% in 2012). However, the number who have no intention of buying has doubled over the same period (from 5% to 10%), suggesting a widening gap between these two groups.
However, it is not all doom and gloom with many would-be buyers adjusting their expectations over recent years and making compromises or sacrifices in order to take that all-important step onto the first rung of the housing ladder.
This year’s research figures reveal the number of young buyers prepared to make certain compromises has actually fallen over the past year, suggesting a renewed sense of consumer confidence amongst this segment of the market.
Would-be buyers are still open to the idea of a ‘starter home’ which requires further work (44%) before they are fully satisfied with it. However, location remains a priority; the number who would sacrifice living in a trendy area has fallen from 38% to 35%, while the number who would consider moving away from family has fallen from 29% to 26%.
These compromises vary across the country. Londoners, with their tribal loyalty to north or south of the river, live up to their reputation with only a quarter (25%) of those living in the city willing to reconsider living in a trendy location (compared with 35% nationally).
John Willcock, Head of Mortgages at Post Office, said:
“For many people owning their own home is a dream they are determined to make a reality, and our report highlights the lengths some will go to. Since the recession in 2008, people have taken extra steps to save money for a deposit. However, the launch of the Government’s Help to Buy scheme and a raft of affordable loans on the market look to have rallied optimism amongst first-time buyers.”
The survey reveals that young men and women have different motivations for getting on the housing ladder. Of those young women looking to buy, 30 per are driven by the desire to settle down and 30% are tired of renting – while young men consider buying property a good financial investment (29%).
In addition to the compromises some buyers are willing to make, many are also prepared to streamline their lifestyle to save for a deposit. However, the number who would consider this has gradually fallen year-on-year.
Food and fun are the first things to go, including takeaways (57%) and going out at the weekend (51%). Furthermore, 43% say they would consider cutting back on their weekly food shopping. When pushed to it, more than one in ten (14%) would forego saving into a pension in order to put a little more aside for a deposit.
John Willcock continued:
“While older generations are likely to have purchased a home at a young age, today’s 18-34 year olds find themselves in a very different position; counting every penny in order to acquire those essential property pounds."
