Millions of Brits given up on ever owning a home
Published by Max Salsbury for 24dash.com in Housing and also in Finance
For sale sign
New research has found that 4.1 million British adults have given up on the idea of ever owning their own home - 1.8 million of whom are aged 25-44.
Castle Trust's analysis reveals that the average cost of a home for first time buyers has increased by 480% over the past 30 years.
The research discovered that of those still planning to buy their first home, 53% intend to raise their deposit through savings accounts – despite the poor returns. Around 12% will borrow from parents; 5% intend to ask their grandparents for money; and 9% are waiting to receive an inheritance.
And one in four of those intending to buy a home don’t know how they will raise their deposits.
Sean Oldfield, Castle Trust chief executive, said: “The biggest challenge facing those who want to buy a home in the future is finding a way to save a deposit which keeps pace with rising house prices. The savings market is offering desperately low returns – even the best products struggle to get above 2% - and that is before tax is deducted. The Halifax House Price Index, by contrast, has risen by 7.8% during the last 12 months alone. Independent research indicates that 1 in 5 would be interested in saving for a deposit with an investment linked to house prices, if such a product existed."