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Many young people fear they will never buy a home

New research has shown that 77% of young non-homeowners would like to buy a house or a flat of their own.

In spite of this, 64% fear they have no prospect of ever doing so.

The survey of 8,000 people aged between 20 and 45 was carried out by the National Centre for Social Research on behalf of the Halifax.

It revealed that most young people are pessimistic about ever being able to buy and fear that they will have to rent for the rest of their lives.

They feel that banks are not prepared to lend to them, or else ask for large deposits which they cannot provide. It means than many young people simply give up trying.

Only 5% said they were making sacrifices to save for a deposit; most said they had no spare cash or were trying but failing to put anything aside.

Stephen Noakes, Commercial Director, Halifax Mortgages, said: "Our research indicates just how many potential first time buyers are not making it to the application stage because of a fear of being declined.

"We would like to help aspirational home buyers to realise they do have options, that they can apply for a mortgage, and that it is still possible to get onto the property ladder."

The Halifax says it approves 8 out of 10 mortgage applications from first time buyers. Other banks and building societies are also starting to lend more.

Many young people get round the problem by using options such as shared equity schemes, buying with friends or getting help from parents or grandparents.

All of these approaches can help, although it’s important to make sure everyone understands all the legal implications, even when buying with friends or with the help of family members.

Please contact us if you would more information about buying or selling a home.

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