Fears grow for first-time buyers
Nearly two-thirds of adults believe they will never buy a home, with fears that lack of mortgage availability will lead to a generation of renters.
According to a report by the National Centre for Social Research, 77 per cent of all non-homeowners still aspire to own their own home, but nearly half of 20-45 year-olds say Britain is becoming more like Europe where renting is seen as the norm.
The report, commissioned by lender Halifax, surveyed 8,000 20-45 year-olds, and found that two thirds of non-homeowners believe they have no prospect whatsoever of buying a home.
The perception that banks are not lending, the size of mortgage deposits necessary, and a fear of the application process has prevented young people from making any significant attempts to buy a home. Only 5 per cent of the survey group were making sacrifices to save for a deposit, and 95 per cent say they have no spare cash or no interest in saving for a deposit.
The report also revealed widespread pessimism about lenders and the mortgage application process. 84 per cent of the respondents said first time buyers are put off by a belief that banks do not want to lend to them, and 60 per cent said it is very hard or virtually impossible to get a mortgage.
Alison Blackwell, NatCen report author, said: ‘The phenomenon of Generation Rent could have major socio-economic implications. It would mean fewer homeowners being able to buy and therefore fund the construction of the new homes required in the UK to meet demand, resulting in a slowing down in the housing market. It could open up a widening of the wealth gap that already exists between home-owners and non home-owners.’
