UK property prices: Have renters given up on owning their own home? Just 40 per cent of renters are saving for a house
The UK's renters have given up on graduating to property ownership, it seems – after new research suggested just 43 per cent of renters aged between 20 and 45 are saving to buy a home.
The figure has fallen by six percentage points since last year, Halifax's Generation Rent report showed.
More than half – 57 per cent – of those who don't own a home said the size of the deposit required was a barrier to home ownership, while 56 per cent said high property prices were putting them off, and 53 per cent were worried about their low income.
In London, the percentage of people put off by high property prices rose to 68 per cent. The capital also had the lowest proportion of homeowners in the 20-45 age bracket, with just 39 per cent owning their own homes. Not surprisingly, at 82 per cent, it also had the highest proportion of renters who worry they'll never own a home.
The gap is widening between the amount of time renters expect to have to spend saving, compared with the amount of time those who already own homes actually did save. Renters said they're prepared to scrimp for 5.4 years, while those who live in their own properties said they'd saved for an average of 3.6 years.
But Craig McKinlay, mortgages director at Halifax, pointed out prospective buyers' pessimism may just be a matter of perspective.
While there has been an increase in first-time buyers in the last 12 months, at the same time there is also a growing group of young people who believe they won’t be able to get a mortgage. This difference between the reality and their perception needs to be addressed urgently if we are to prevent people from giving up on getting on the housing ladder.