The annual Generation Rent report from Halifax examines attitudes towards the housing market among people in the UK aged between 20 and 45. The third annual report, which is based upon a survey of over 8,000 young adults and 1,000 parents of young adults, highlights continued and growing pessimism about housing in the UK among the renting generation.
CML data from the first three months of the year shows that the average deposit for first time buyers during this period was almost £27,000. Doubt among young renters about their ability to get on the housing ladder is such that 71% of those surveyed believe that the UK might be divided between owners and renters in the near future. A further half believes that the next generation of Britons will be ‘a nation of renters’.
The report showed that home ownership is still considered important by 20-45 year olds:
- 66% believe that homeowners are more settled
- 47% believe that it is better to raise a family in an owned, rather than rented, home
- 57% believe that it will be difficult to retire without owning a home
Despite the prevailing aspiration, however, only 33% of the respondents are prepared to save for more than three years for a deposit. 35% cannot currently afford to put any money aside at all, and only 15% can put aside more than £50 per month.