Parents Fear That Their Children Will Never Be Homeowners
Increasing financial strain and rising prices are causing many parents to worry their children are unlikely to get on the property ladder.
The Distant Dream of Home Ownership
In a study undertaken by the online estate agency nested.com, it was found that 59% of parents across Britain are concerned their children will never get the chance to be homeowners thanks to high rents, increasing property prices and difficulties with mortgage lenders.
89% of respondents believe being a homeowner is becoming increasingly “unachievable”, and a whopping 90% think that purchasing a house is more of an unattainable fantasy for younger generations in the current climate.
Why the inability to get on the housing ladder? 48% of parents feel that young people are unable to save for a deposit thanks to high rents. It’s estimated that adults will, on average, spend around £63,000 on renting properties over an average eight and a half year period before they can look to purchase their own. Meanwhile, 25% blame housing shortages, while 33% of parents feel mortgage lenders are to blame for making borrowing money difficult. In addition, house prices in some areas are seeing marked increases. A good example are properties in Berkhamsted, which have been an average £33,875 increase in the last year alone.
This worry is reflected in two-thirds of the younger generation believing they’ll likely never be able to own their own home in their lifetime.
Is There Hope for First-Time Buyers?
There are ways to help make the homeowner dream a reality. The Help to Buy Scheme has also been amended in summer 2019 to allow homeowners to reduce their mortgage repayments and spread them out over a lengthier period of 35 rather than 25 years.
For those looking to get on the property ladder, ensuring you have a quality conveyancer is crucial, as is obtaining a Home Buyers report for peace of mind. For instance, a homebuyers report London can be requested conveniently online from the likes of https://www.samconveyancing.co.uk/Homebuyers-Survey/Home-Buyers-Survey-London.
There are other government incentives to consider, such as the Help to Buy ISA, the Lifetime ISA and the Starter Home Initiative. There’s also the option of shared ownership. Nonetheless, the obstacles facing first-time buyers remain disconcerting, which explains the record number of young adults living with their parents to save money.