An aspect of the first time buyer’s market is highlighted in research by property website Globrix.com. It states that 38% of aspiring first-time buyers anticipate being 40 or older when they buy their new home. A further 8%, or one in 12, of aspiring first-time buyers surveyed don’t expect ever to buy their own home.
Whilst 74% of existing homeowners say they bought their first property before they were 30, only 13% of aspiring first-time buyers say they would be able to get their foot on the property ladder before reaching that age and even then they would be relying heavily on ‘the Bank of Mum and Dad’ to help them get their first place. Finally over a quarter, 26%, expect their parents to provide 20% or more of the deposit they need to buy their first home.
Research also suggests that University debt may be acting as a further barrier to young people getting onto the property ladder. Of those surveyed by Globrix.com who had graduated since 2006, one in seven, 14% agree that their university debt will delay them getting on the property ladder and one in five, 21% agree that they would have been able to get on the property ladder earlier if they hadn’t gone to university.
Of those who haven’t been to university, 24% said that getting on the property ladder is more important than getting a degree and one in five, 21%, say they are glad they didn’t go to university as the debt means it wouldn’t have been worth it.
It seems from the results of the Globrix survey that many young people who want to get on the property ladder have accepted that they will be much older by the time they finally do.
A significant proportion has given up the dream altogether. How many young people already accept renting as a long-term alternative to buying, and with average university debt set to increase significantly over the next few years, will this trend strengthen?