The dream of owning a home is slowly fading away for the younger generation in the UK. According to a recent survey by consumer group HomeOwners Alliance, a whopping 1.9 million aspiring homeowners believe they won't be able to follow their parents' footsteps into homeownership.
The study reveals a stark contrast between generations. While 75% of respondents said their parents owned their home, only 48% expect to own one themselves. This trend suggests a worrying future where homeownership continues to decline, affecting future generations' prospects.
The majority of those who don't own a home (71%) aspire to do so. However, over half (52%) don't think they will ever manage it. The main obstacles? High house prices (60%), saving for a deposit (44%), affording monthly mortgage repayments (33%), and getting approved for a mortgage (31%).
Interestingly, 28% of younger homeowners rely on government schemes to afford a home. Plus, 30-plus year mortgage terms are becoming the norm, with 38% of homeowners aged 18-34 having a term of 30 years or more.
Paula Higgins, HOA chief executive, criticises the government's inaction. She says, "The government has failed aspiring homeowners, and continues to degrade the life chances of young people by continually not building enough homes."
She also points out that while low mortgage rates have benefitted the over 35s, the younger generation is left dependent on government schemes. However, with the flagship Help to Buy programme ending, there's nothing to fill the void.
Higgins concludes, "We're at a tipping point. Four million of the 7.5m aspiring homeowners in the UK don't think they will ever be able to own their home. And almost two million don't think they will follow in the footsteps of their home owning parents."
With the upcoming election, the focus will undoubtedly be on how the parties plan to build more homes and provide much-needed support to first-time buyers.
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