personal finance

Typical under-30s have saved nearly £10k for deposit on first home, research finds


Under-30s have saved almost £10k for a deposit on their first home – but are worried about how quickly house prices are rising, according to the research

Under-30s have typically saved £10k towards a deposit to get onto the property ladder
Under-30s have typically saved £10k towards a deposit to get onto the property ladder

The typical under 30 has saved nearly £10,000 for a deposit on their first home, new research has revealed.

But three quarters worry that house prices are rising so fast that their salary increases cannot keep pace.

More than half (55 percent) of the 2,000 18-29 year-olds polled would be happy to move to a less desirable location if it meant they could own their own property.

And 76 percent feel the government should be creating more incentives to help young adults get on the property ladder.

Overall, after paying bills, rent and other living expenses, the average under-30 has squirreled away £9,300 towards their first property.








Conscientious under-30s have squirrelled away almost £10k to put towards their first home
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Image:

Max Mumby/Getty Images)



The research was commissioned by Shared Ownership Week, which kicks off on September 23 and aims to provide advice on how to make the scheme work for your needs.

A spokesperson for Shared Ownership Week said: “It is clear that like generations before them, under-30s are just as ambitious when it comes to buying a home.

“However, many are facing new challenges before taking this step, and finding obstacles in their way.

“Owning a home shouldn’t be something out of reach for young people, or indeed anyone – which is where shared ownership can help.”





Under Shared Ownership, buyers build equity on their share of the property while paying a lower rent on the part they don’t own. They can then buy further shares until eventually owning the home outright.

However, the study found four in ten respondents are not familiar with the concept.

It also emerged that seven in ten of those surveyed via OnePoll have given up on luxuries to help boost their savings.

Although 35 percent feel the pandemic has actually had a positive effect on their bank balance.

But more than eight in ten (83 percent) feel that the cost of housing in the UK is “seriously unfair”.








But hopeful house-hunters are worried property prices are rising faster than their salaries can keep up
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Image:

Nathan Stirk/Getty Images)



A spokesperson for Shared Ownership Week added: “For a lot of young people, it seems their only option is to withdraw from “The Bank of Mum and Dad”.

“Our research found shared ownership could be a huge help to many, but they’re perhaps not as aware of it as they could be.

“For anyone who is looking to get on the property ladder and isn’t sure where to start, we’d certainly advise doing some research in this direction.”

Shared Ownership Week has teamed up with interiors influencer Kelsey Heinrichs to shine a spotlight on how to style and furnish a first home on a budget.

She said: “I’m currently saving like mad for my own home buying journey, so can really relate to the plight of first-time buyers.

“After saving for a home, plus all the costs that go with it, it’s unlikely that anyone has an excessive budget for furnishing their first place.

“But there’s no need to fret about this as even the best interior designers cheat their way to ultimate house goals.

“I’m looking forward to sharing my own guide to achieving home style bliss at a fraction of the price.”





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