Buy-to-let
Brits without a home will go to extreme measures in order to buy their first property, according to new research from Santander Mortgages.
The study reveals that 1.1 million (seven per cent) would consider emigrating if it meant they could afford their own home. A further one in 10 (nine per cent) would be willing to move jobs or relocate somewhere else in the UK to get a foot on the ladder, rising to 23 per cent of 18-24 year olds.
The research reveals that 7.5 million (49 per cent) of non-homeowners don’t ever expect to own a home. However, the dream is alive for many, who are willing to draw on a range of measures to save for a deposit.
Of those surveyed the majority were willing to reduce their standard of living (20 per cent) or sacrifice luxury purchases, for example, a car or a holiday (20 per cent).
Younger generations are the most likely to rely on family in their quest for home ownership, with more than a quarter (28 per cent) of 18 to 24 year olds who do not own a home living with their parents or partner’s parents while they save money for a deposit.
An additional six per cent of this age group would be willing to move back in with parents despite having already flown the nest.
Almost a third (30 per cent) of 18 to 24 year olds who are non-homeowners would use their inheritance to build deposit funds and one in 10 (11 per cent) will use their parents as guarantors to secure a mortgage.
The same number would be willing to withdraw money from pension savings, compared to only six per cent of 45 to 54 year olds.
The things non-homeowners are willing to do in order to save for a deposit:
|
All non-homeowners |
18-24 year old non-homeowners |
||
| 1. | Sacrifice non-essential / luxury purchases e.g. holiday, new car |
20% |
41% |
| 2. | Reduce standard of living e.g. buy cheaper food, visiting friends less |
20% |
37% |
| 3. | Use an inheritance to pay for a deposit |
18% |
30% |
| 4. | Relocate / change jobs and live somewhere else |
9% |
23% |
| 5. | Move out of the UK |
7% |
11% |
| 6. | Withdraw money from my pension savings |
5% |
11% |
| 7. | Take on additional debt |
4% |
8% |
| 8. | Move back to my, or my partner’s parents’ place |
4% |
6% |
Miguel Sard, head of Santander Mortgages, says: “With living costs rising ahead of salaries for many people, raising a deposit remains one of the biggest concerns for first time buyers, especially for younger generations.
“However, there are a variety of options available to suit most budgets, so it is crucial that prospective buyers shop around for the best deals and get sound advice in terms of properties and mortgages.”
