Many young adults in Britain have given up saving for a house, despite the boost to the market brought by the Help to Buy scheme.
According to research in an ongoing study into the financial circumstances of young adults in Britain by moneysaving website www.vouchercodespro.co.uk, many 18 to 30 year olds are waiting for inheritance from a relative to help them onto the property ladder.
When asked, ‘Are you currently trying to save money to buy a house, or have you ever done so?’ more than a third of the people taking part, 35 per cent, said ‘I have tried to save in the past, but given up doing so’. These people were then asked why they had stopped trying to save up for a property, to which the most common answer with 86 per cent agreeing was ‘found it too difficult financially’.
What’s more, 41 per cent of those young adults who claimed to have given up saving for a house admitted that they were waiting for a relative to pass away so that they could use some form of inheritance towards buying a home.
A fifth of those taking part in the poll, 19 per cent, said that they thought they would never be a homeowner.
62 per cent of those taking part were still living at home with their parents, whilst 25 per cent said that they were renting a property. The remaining respondents selected ‘other’.
When asked how much they thought they’d need to buy a property in the current market (in terms of a deposit) the average answer was ’25 per cent’ of the property value; despite there being schemes in place that enable people to buy a home with a much lower deposit, for example 5 per cent.
George Charles, spokesperson for VoucherCodesPro.co.uk, said the following: “It’s good that there are schemes out there like Help to Buy but clearly it’s not helping all that much. My worry is that many people will use the Help to Buy scheme to get one foot on the property ladder, only to later realise the monthly mortgage repayments are hard for them to cope with.
“Young people shouldn’t give up saving for a home, or rely on inheritance from a deceased relative. Putting a realistic savings plan in place would enable plenty of people to save a little bit of cash each month towards a home. If that means waiting a few years before you have enough for a deposit then so be it, but people shouldn’t just throw in the towel.”
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