Buying property out of reach for many youngsters
12th Dec 2012
The purchasing of properties for sale for the majority of young people in the UK is out of reach, according to the results published as part of a new survey.
The study was conducted by think tank the Institute for Public Policy Research (IPPR), and it discovered that 88 per cent of young people are now aspiring to purchase their own piece of UK property at some point in the next ten years.
However, in spite of these wishes, 51 per cent of Brits aged between 18 and 30 said that they felt they would not be able to do so because of price barriers and the inability of most to be able to raise money for a deposit, which can typically be between 20 and 25 per cent of the value of a home for first timers.
It was found as a part of the survey that the number of people aged under 30 who own their own house is expected to decline by the year 2020. Those in this bracket will fall by 1.1 million over the next eight years to just 1.3 million homeowners.
In addition to this, it has been discovered that the number of under-30s who are living the high-demand market of the privately rented sector will increase by around 1.5 million, while half a million more people in their 30s will be living with their parents still because they cannot afford to pull themselves onto the property ladder.
It is thought that a change in people's situations when it comes to purchasing houses can also have an effect on their future family plans. The IPPR said that the majority of young people responding to the survey indicated that they would firstly look to find financial stability, which included purchasing their own home, before they decided to have children.
Meanwhile, the lack of affordability in the market means that 22 per cent of people who are currently sharing a home with someone they did not know before they moved in, a common way to save for a deposit, feel that their situation negatively effects how safe they feel in their household.
Posted by Staff Writer: Ewan Robertson
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