Millions of young people ‘unlikely’ to follow parents on property ladder

Almost 2m aspiring homeowners do not think they will be able to follow in the footsteps of their parents by owning a property, research suggests.

The figures are based on thousands of responses to a poll by the HomeOwners Alliance.

The campaign group found that while three quarters of aspiring homeowners say their parents owned their home, only 48% expect to own themselves, a drop of 25% since the survey was last conducted a couple of years ago.

The majority (71%) of Brits who do not own their home, aspire to do so in the future, the survey found.

But 52% do not think they will ever be able to step on the property ladder, with respondents blaming high house prices, saving for a deposit, mortgage rates and the application process.

Around a quarter of younger homeowners said they would rely on Government schemes to afford a home. 

The research also revealed some of the steps buyers are taking to purchase a home.

More than a third of young buyers aged 18-34 have a term of 30 years or more on their mortgage, versus 15% of UK homeowners overall

Meanwhile, one in five homeowners aged 18-34 rely on the Bank of Mum and Dad.

Commenting on the findings, Paula Higgins, chief executive of the HomeOwners Alliance, said: “Brits are giving up on their dream of homeownership, our damning survey reveals. The government has failed aspiring homeowners, and continues to degrade the life chances of young people by continually not building enough homes.

“This shortage of new homes has led to rocketing house prices, leaving aspiring homeowners dependent on Mum and Dad to bolster savings or by locking themselves into longer term mortgages which cost them more in the long run. While over a decade of low mortgage rates helped the over-35s to buy a place, in today’s broken Britain, homeowners rely on Government schemes to get them out of this mess and bridge the affordability gap - except the government’s flagship Help to Buy programme has ended with nothing to fill the void.

“So here we are, at a tipping point. 4m of the 7.5m aspiring homeowners in the UK don’t think they will ever be able to own their home. Almost 2m don’t think they will follow in the footsteps of their home owning parents. We know that the fewer people that own, the worse the prospects of homeownership are for their children.

“With the upcoming election a key issue will be how the parties plan to build more homes and provide much needed support to first time buyers.”