Two in five Brits say they’ll never buy a home
Two in five non-homeowners are losing hope of ever buying their own property, according to Halifax.
The lender found that those who rent or live with parents face barriers to buying. This is despite the statistics revealing a surge in first-time buyer numbers over the last 10 years.
In the last decade the number of first-time buyers in the UK has shot up, from 72,180 in the first half of 2009, to 170,060 in the first half of 2019. However, the average age of a first-time buyer has risen slightly from 30 to 31 over the same period.
Barriers to buying
Two-thirds of non-home owners said that raising a deposit remains a barrier to buying, while a quarter of those who plan to buy a home are doing so with help from the Bank of Mum and Dad. Without financial support from family, getting on the ladder can be a challenge.
More than a third of parents (35%) say they are happy to help their children with the cost of buying a home, while a quarter (25%) believe their children will never own a property.
Mortgage affordability is seen as a significant barrier by two thirds of people (66%), despite the current period of low interest rates.
Russell Galley, managing director at Halifax said: “Taking that first step onto the property ladder remains a rite of passage for many. The financial hurdle of saving enough for a deposit might feel like a daunting or at times near-impossible task, but there are a number of options out there, including government schemes and family support mortgages, to help put first-time buyers on the right track.
“Last year, first-time buyers accounted for the majority of the mortgage market for the first time in well over 20 years. This shows that with the right support and a few sacrifices, home ownership can remain an attainable goal.”
Halifax has launched the Family Boost mortgage to help first-time buyers without a deposit, where savings from parents or other family members can be used to provide security for 10% of the loan.