If you’re a young couple starting out in England, or a single person with a dream of owning your own home – you might need to think again. That’s because research has recently dhown that two in three people have given up on their dream of home ownership.
Renters Versus Owners
A survey conducted with 8000 young adults by the National Centre for Social Research (NatCen), which was commissioned by the Halifax has found these startling statistics. The problem is due to many factors including high prices, home shortages and issues with getting a mortgage.
The researchers say that this shows that future generations will most likely remain renters, rather than home owners.
Losing the Dream of Home Ownership
According to a report published recently by Generation Rent, 77% of those polled who are aged 20-45 said that they do dream of owning a home. 64% of those people, however, feel that they will probably never actually own one.
The report from NatCen shows that one of the hurdles that is keeping young people from home ownership is the fears surrounding the potential mortgage. 84% of potential first-time home owners feel intimidated because they think that the banks don’t want to loan them money. 67% actually think that there is no reason to even apply for a mortgage.
Moving Back Home
Interestingly, these numbers are reflected in the mortgage rates for April, which saw a record low. April had 18% fewer home purchase loans than did March.
These statistics and the pursuit of home ownership are leading to many complicated decisions. The housing charity Shelter recently published a report that said that 20% of young adults have moved back with mum and dad. A similar proportion, the report has found, are giving up on the idea of having children in order to save for the home.
NatCen researcher Alison Blackwell pointed out the consequences that the pursuit of home ownership could have for the future, as she said, “The phenomenon of Generation Rent could open up a widening of the wealth gap that already exists between home-owners and non-homeowners. And people risk insufficient finances at retirement.”