About Time We Asked: Can Young People Ever Own Their Own Home?By Angelica Malin
It seems like buying a home is a distant dream for many young people with the desire to get on the property ladder. The continual price rise of homes, matched with the cost of living has left it impossible for some to make the shift from renting to buying.
In fact, it’s put the fear in many that they will never be able to afford to buy. Today over a third of renters now believe they’ll never be able to buy with the bank of Mum and Dad their only hope when it comes to saving for that deposit. According to a recent study, more parents than ever before are helping their children buy homes, with six in 10 chipping in to give their children a step up onto the ladder.
While this isn’t necessarily to cover the whole deposit, it seems more and more parents are feeling it’s their duty to help out where they can. Only one in 20 parents said they could afford to pay out the full amount of a deposit, while many do their bit by letting their child stay at home rent free or providing free child care.
What this is doing however is putting pressure on both parents and their children. If the bank of Mum and Dad is becoming the only way young people can now buy homes, what does that mean for those who don’t have that luxury?
A further study found that over half of renters do so because they simply can’t afford to buy a home, with the majority believing the day to buy will never come. On average a millennial is able to save just seven percent of their wage, meaning that it would take around 18 years to save for a deposit for a house, so it’s understandable young people are worried.
And with rents rising faster than the average wage, things are only going to get harder. Renters also believe that the removal of mortgage interest tax relief on buy to let properties will reduce the supply of rental properties, creating an even higher demand.
Which, of course, will leave parents in even more of a difficult position where they may have to take children in once again or even financially support their offspring just to rent.
It’ll be interesting to see how the market evolves over the coming years with the housing market in a precarious position. We’ve already seen a fall in London house prices in the past year, and we could see movement countrywide if properties are simply unaffordable for even parents and children combined.