For those renting or living with parents, we all have dreams of owning our own home, don’t we? Well maybe not. New research undertaken by property law experts at Slater and Gordon has discovered that more than 40% of 25-45 year olds have completely given up on the idea that they will ever own their own house.
Amazingly, the statistics show that for those aged 35 to 44 who weren’t on the property ladder, 30% believe they will never be able to afford a home, with one in six left disillusioned by the state of the property market. Nearly one in four of all those surveyed said they had to cut back on essentials to save for a home; this included food and heating not just the luxuries.
It seems that there is a generation of people that simply cannot afford to own a house. The research found that those who were saving for a house had managed to bank on average £10,570 towards a deposit, but needed around three times that amount to afford to buy a house and cover stamp duty and other associated costs. One in ten also felt they were trapped by the high cost of rent; the amount spent on rent every month took away from what they could save for their deposit to buy a property.
Slater and Gordon Senior Property Lawyer, Stephen Lintott, who commissioned the research said, “The recent changes to stamp duty land tax may have helped in the short term, but in the long term, the supply of housing needs to be boosted - perhaps by a reform of planning and tax laws and better access to finance for purchasers and developers. The rental market also needs to develop, responding to changes in how people want to rent, including longer term leases of good quality affordable accommodation.”
There are schemes out there where first time buyers can purchase part of the property and rent the other part. This is called a shared ownership and can be a great way to get onto the property ladder without the need for a large mortgage. More of the property can be bought at later stages when it can be afforded. Alternatively, shared equity arrangements are available, sometimes as part of an affordable housing offering promoted by developers in conjunction with local planning authorities.
Stephen Lintott is head of commercial property at Slater and Gordon Lawyers UK.
There is help available for you if you are looking to purchase a house or would like advice on any property matters. At Slater and Gordon Lawyers our Property Solicitors are experts in all aspects of property law. Call us on freephone 0800 916 9083 or contact us online.