Fewer young renters believe they will be homeowners in the next five years and numbers considering using the Bank of Mum and Dad look set to fall.
That’s according to the findings of a new survey on homeownership attitudes and aspirations of ‘generation rent’ which identified a shift in both outlook and confidence from renters over the past year.
In 2018, 62% of non-homeowners surveyed hoped to purchase a home in the next five years. Fast forward to 2019 and just 52% possessed the same goal.
Meanwhile, the survey by law firm Collyer Bristow revealed fewer young renters thought the Bank of Mum and Dad would be able to help them own their own property.
The numbers tapping into this resource went up between 2018 and 2019 – with 45% of buyers getting support from parents in 2019 compared to 32% in 2018. However, going forward, only 25% expected their parents would be able to help them get onto the property ladder.
Alex O’Connor, a real estate partner at Collyer Bristow, said while homeownership was still a goal for many, uncertainty in the market caused by Brexit and the general election was ‘clearly being felt’.
“There has been a marked fall in the number of people who believe they will own their own home within the next five years – confidence in the housing market has yet to return,” he said.
Inheritance
For many of those surveyed, savings were no longer enough to get the leg up required to make the leap into homeownership.
With the Bank of Mum and Dad looking like it might run dry, Collyer Bristow said inheritance was becoming a more prominent form of first-time buyer finance.
O’Connor added: “One statistic that continues to surprise is just how important inheritance plays, with some 22% inheriting either cash or property. The ‘bank of mum and dad’ helps in many different ways.”
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