The increase in house prices has caused an escalation in the number of young individuals giving up on the prospect of owning a property, with 57% of young professionals choosing to rent long-term over getting their foot on the property ladder. However, the devoted 43% of renters who are saving to buy a property are having to make one or two sacrifices to afford buying their first home. The increase in deposits is having a severe impact on prospective first time buyers, which is having a domino effect on 18-34 year olds, causing more and more renters to regard the likelihood of owning a property an unachievable prospect.
The goal of owning a home is essential for many young people, even though the market has caused a downpour of doubt and hopelessness for prospective homebuyers. The beneficial Help To Buy Government scheme may have made property buying that little bit easier, but individuals are still struggling to afford their own home.
The recession in 2008 has influenced many people to go the extra mile to save money for a deposit and young people are having to make lifestyle sacrifices to afford their own home. The top three spending areas cut include: socialising and seeing friends (47%), going without holidays (44%), and not having meals out (42%). Other short-term sacrifices people are prepared to undertake are taking on another job or extra shifts at work (34%), reducing food and heating bills (29%), packing in expensive hobbies (21%), and simply choosing walking over driving or public transport (21%). Cutting back on luxuries may seem like reasonable short-term sacrifices, however, young potential homebuyers were also willing to take more drastic steps to afford their deposit, such as: move back in with parents or relatives (19%), sell possessions (14%), put a wedding on hold (7%), sub-let a flat or room share with a friend or stranger (6%), ask family or friends for money (6%), and have their partner return to work (4%).
People are not only making lifestyle compromises but are making sacrifices with the property itself. Young professionals are having to choose a more affordable area, even if that means living further away from their family, not splashing out on furniture or lavishly decorating their home, choosing a home that is not readily decorated, and not having original property features. Nevertheless, in spite of this, 14% of those questioned claimed that they weren’t making any sacrifices whilst saving for a deposit.
Are you interested in purchasing a property? Don’t give up on the prospect of owning your own home; make one or two sacrifices, be sensible about the money you spend and be practical about the house that you choose to buy. So if you’re serious about buying a property you will need to find out the amount of money you can borrow (which is determined by your salary), take into consideration your spending habits and then decide on an amount that you can afford to spend. Once you’ve determined your budget everything gets much more exciting, it’s time to find a home!