Almost half of renters believe they will never own a home
Some 45 per cent of those who don’t yet own a home think they never will, according to a new report.
While 65 per cent of those under 34 are more optimistic about their chances of owning a home in the future, that drops significantly when people are between the ages of 35 and 54 – of those, only 23 per cent feel the same way.
The biggest reason cited for not feeling prepared to buy a property is the financial implications of doing so, with four out of 10 saying they don’t feel financially prepared to buy a property in the future.
The increasing cost of buying a home means that just over half of 33 to 54-year olds have never owned a property so far, and the average age of a first-time buyer has risen from 31 to 33 over the past decade.
And a third of adults aged 18 to 34 still live with their parents, according to the survey by Fidelity International.
“First time buyers need substantial sums to get their foot onto the ladder, even with government initiatives like Help to Buy. And they must do so while in many cases continuing to pay high monthly rents. For those looking to take their first steps on the ladder, saving, or ideally investing, early, is key to building up the pot that will be needed to pay deposits, fees and stamp duty” claims Tom Stevenson, investment director for personal investing at Fidelity International.
“If you are investing for more than a few years this is likely to mean an exposure to the stock market – over longer investment horizons, shares have historically outperformed safer assets like bonds and cash. Minimising any tax due by sheltering savings in tax-advantaged accounts like an ISA also makes good sense.”
For the survey, conducted in April this year, Opinium Research contacted 2,016 people in the UK on their views about modern life including their current circumstance, readiness for different life events and plans for the future.