Home ownership numbers falling has been all over the news over the last couple of days.
However, a recent study conducted by icount Money suggests that the youth of the UK still remain optimistic when it comes to owning their first property.
The proportion of home owners dropped from 72% in April 2003 to 58% this year in Greater Manchester
Major cities – particularly Manchester – have been hit by the biggest fall in home ownership since a peak in the early 2000s.
But, that isn’t putting today’s youth off one iota. We surveyed 1000 people age 18 – 24 and asked “when do you think you will buy your own home?”
The results came as a pleasant surprise.
Optimism among most people surveyed
A rather impressive 61.5% of those surveyed thought they will buy their first home between the ages of 20-30.
And maybe they have good reason, last year according to analysis of official data by the Mortgage Advice Bureau, a broker, the average age of people who bought a home in the last year through the “Help to Buy 2” mortgage guarantee was 31, compared with the national average age of 37.
So, what did the others think?
21.5% of those surveyed thought they would buy their first home between the ages of 30 – 40, which is more in keeping with the national average.
Only just over 1% of people thought they’d first buy between ages 40 – 50, 0.3% between age 50 – 60.
8% said they had no idea what age they would buy their first home.
It’s no secret that house prices have risen quicker than wages. Coupled with the greater difficulty in obtaining credit to buy, home ownership was always likely to decline.
However, there are many government backed schemes out there at the moment for first time buyers. They are helping to bring down the national average first-time buyer age.
Nobody wants to see a repeat of people being overstretched with mortgages they can’t afford. But, until more affordable housing is built, it’s hard to see house prices dropping or slowing anytime soon.
What age do you plan to buy your first home?