Young people are prepared to relocate to get onto the property ladder
A recent study carried out by Halifax uncovered that one in ten young people in Britain are prepared to leave the UK to get on the property ladder. The analysis found that 48% of young people feel it is harder than ever to purchase their own home.
The number of first-time buyers in the market reached a ten year high in 2016 however around half of 18-34 year olds still feel home ownership is a not a realistic option for their generation.
With more than half of young people finding deposits unrealistic and expensive, it is unsurprising that the average age of a first-time buyer has slowly risen to 30.
Generation rent are now having to consider relocating elsewhere in the UK to improve their chances of purchasing a property.
The average deposit needed for a first-time buyer is just over £32,000. London requires the highest deposit of £100,445 and Northern Ireland has the lowest at £16,695.
Halifax housing economist, Martin Ellis, said: “Even with the highest number of first-time buyers in the last decade in 2016, many young people still feel they are running financial gauntlet – saving for a deposit, finding an affordable property in the right area and managing to fund living in the meantime.
It’s never too early to do some research to help build a better understanding of how much is affordable, the borrowing options available and calculating what’s achievable to help make owning a property more of a reality.”
One in five aspiring homeowners still believe home ownership is a thing of the past, with a third feeling the mortgage criteria is often too difficult to meet even if they manage to raise a deposit.
There are still options for those determined to get onto the property ladder. Some mortgage lenders are offering first-time buyers mortgages with 5% deposits. Lower deposits and longer mortgage terms would help make payments more affordable.
Full article available on Property Reporter: http://www.propertyreporter.co.uk/property/1-in-10-young-brits-prepared-to-leave-uk-to-get-on-the-property-ladder.html