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Millions of Brits given up on ever owning a home

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Millions of Brits given up on ever owning a home

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Published by Max Salsbury for 24dash.com in Housing and also in Finance

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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."

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