Younger homebuyers are shunning city living in favour of the cheaper prices and community spirit of rural areas, a new report by Nottingham Building Society has revealed.
A survey of young people aged between 20 and 37 uncovered evidence a third of this age group were saving for a property and 11% were planning to take out a mortgage in the next year.
But not only were this age group taking more ‘non-traditional’ routes onto the property ladder but they were also rejecting more central locations for places where they felt more at home.
Indeed, 64% of this age group said they thought they would get a better quality of life in the country and a better sense of community, with more activities. A third said they would never live in a big city.
The Nottingham said this indicated the generation would be increasingly moving away from central city properties and focussing on more rural location instead.
The study, which delved into the home setup up of millennials as well as how they viewed their future housing prospects, discovered just a quarter of this generation currently owned a property with a mortgage.
Meanwhile, of those who did have a mortgage only 11% used a mortgage broker.
Ben Osgood, senior mortgage manager at The Nottingham, said: “People regularly compare a range of providers when it comes to their energy and insurance so it’s surprising the research found that just one in ten millennial house owners used a mortgage broker, meaning they don’t do the same for their mortgage. Especially considering it’s likely to be their most expensive outgoing.”
Positive outlook
The analysis, carried out by YouGov, also revealed how many people in this generation were feeling optimistic about their finances despite the uncertainty around Brexit.
The Nottingham found 38% felt they were ‘better off’ now than a year ago and a third thought their household situation would improve over the next 12 months compared to just a fifth of the national population as a whole.
However, a third also said they took into account news about the economy before making big purchases which suggested Brexit could be an influence in the fact just 11% were planning to take out a mortgage in the next year.
The Nottingham said it had introduced a whole-of-market mortgage comparison for members to help ensure they left with the right deal, regardless of provider.
Osgood added: “Getting the right advice and product should help the millennial generation feel more confident about their house purchase and know they have a mortgage that suits them, giving them the confidence to make that first leap.”
