To buy or not to buy – that’s the question on many millennials minds as they choose between saving for a deposit (which seems like an impossible dream to some) and life’s everyday luxury’s (or none-luxury’s like bills). With the average first time buyer age increasing, are millennials placing less importance on buying a home or are other factors such as the lack of supply, low wages, high rents and living costs at fault.
We’ve done a bit of research to find out and it seems that for some, owning a house seems more like a burden than an achievement. With renting providing flexibility and freedom to live and work, wherever they want, without being ‘tied down’ as well as no mortgage worries if they decide to pack up and travel or end up in a position without permanent work. Happy renters also enjoy the lack of responsibility that comes without owning a home, maintenance issues can be passed across to landlords without having to worry about massive upfront costs if the boiler or washing machine goes. Although they do seem to agree that there are some downsides to renting, such as rent increases, large deposits and tenancy fees, as well as not being able to truly feel at home, when you can’t paint the walls or hang a picture.
For other, not so happy, renters, restrictions such as struggling to save for a deposit and getting a mortgage can be major put offs in the decision to purchase a home. A lack of affordable housing is also making it difficult for first time buyers to get a foot on the property ladder, with many needing at least a 5% deposit, which equates to £11,626 based on the average UK house price of £232,530, resulting in many relying on the bank of mum and dad, inheritance and savings or being priced out of the property market altogether. This in combination with current inflation and low wages, has resulted in a generation of renters and young adults still living at home whilst they save for a deposit.
So, it seems there are many factors which are affecting first time buyers and their decision to take the plunge and purchase their very own home. We would be interested to hear which factors you’ve experienced, have you heard any others, that we haven’t discussed? Let us know on Twitter.