Anderson Bain - andersonbain LLP News & Updates

Stay updated with Anderson Bain's latest news and expert commentary on conveyancing and property law developments. Explore articles from our experienced team.
3 minutes reading time (569 words)

Some Millennials Pessimistic About Home Ownership Prospects

Home ownership continues to be an aspiration for many young adults in the UK, but new research has found that some are not sure whether it will ever be achievable for them. 

According to the study by Experian, 54% of those aged 21 to 35 that don’t currently own a home are not confident they will ever be able to afford one. Over a quarter (26%) of these millennials don’t think they will ever be in a financial position to get onto the property ladder and 28% are unsure.

Ownership doubts apparently intensify as millennials get older. Of those aged 21 to 25 that still live at home, 18% do not think they will ever be able to own their own place compared to 25% of those aged 26-30. This increases significantly to over a third (35%) of 31 to 35-year-olds.

Remaining in the Family Home

Many millennials say that their only option at the moment is to continue living in the family home. Around 41% of millennials currently live at home because they can’t afford to move out. A third say this is because they don’t earn enough and 6% say it is because they are already in debt. On a more positive note, 22% say it because they want to save for a deposit to buy their own home.

Experian found that a quarter (3.3 million) of 21 to 35-year-olds are still living with their parents. Around 16% of them have never left the nest and 10% have apparently moved out temporarily, only to move back again. Of the millennials who have moved out of their parents’ property only half of this group (37%) own their house and the other half (37%) make up ‘Generation Rent’, currently renting the property they live in. For many, even renting their own place is not in sight, with those living at home predicting that on average it will take two years eight months to be in a position to move out.

Increases in Mortgage Lending

Despite the pessimism over home ownership prospects revealed in the Experian study, the UK mortgage market appears to be buoyant, even for first-time buyers.

The latest mortgage trends update published by UK Finance has revealed that November 2017 saw steady increases in mortgage lending for first-time-buyers and home movers compared to the previous month and the equivalent period in 2016.

Looking at the data in more detail, it reveals that:

- There were 34,800 new first-time buyer mortgages in the month, some 15.2% more than in the same month a year earlier. The £5.6bn of new lending in the month was 16.7% more year-on-year. The average first-time buyer is 30-years-old and has an income of £40,000.

- There were 36,200 new home mover mortgages in the month, some 16.8% more than in the same month a year earlier. The £7.5bn of new lending in the month was 19% more year-on-year. The average home mover is 39 and has an income of £54,000.

“The data shows housing market activity remains buoyant, despite November’s rise in the base rate,” commented Paul Smee, Head of Mortgages at UK Finance. “Steady increases in lending for house purchases together with increases in homeowner remortgages reflect a keenness among consumers to benefit from still historically low interest rates, and a highly competitive marketplace.”

Contact Us

For expert legal advice on buying or selling property then contact our specialist property lawyers today.

Britain’s Most Expensive Streets
House Price Trends in 2018 Expected to be Similar ...

By accepting you will be accessing a service provided by a third-party external to https://www.andersonbain.co.uk/

Make an enquiry

Complete our contact form and we will get back to you as soon as possible

Your Name* Please let us know your name.
Email Address* Please let us know your email address.
Phone number* Please write a subject for your message.
Which service do you require? Invalid Input
Invalid Input
Message* Please let us know your message.