Nearly half of current renters believe they will never own a home
Owning your own home is an ambition of most people and it can be said to be particularly British as there are some countries, Germany for example where owning your own home is not a consideration as most families rent. Could this be about to change here as 44% of renters when asked believe that they will never own their own home as they do not think that they could possibly raise the necessary deposit. According to an independent survey which was carried out by Keepmoat, a construction and regeneration company, just 2% of those renting planned to get onto the property ladder sometime this year.
The north south divide is also very apparent even though property in the North is much more affordable than the South. When approached, 62% of renters in Liverpool are quoted as saying that they would never expect to purchase a property, in Newcastle and Glasgow 60% also said they would be unlikely to own a home, this compares with 41% in London. Taking house prices into account this may come as a surprise as the average house price in England and Wales now stands at £178,000, compared to the average in the capital which currently stands at £462,799.
As always it is the deposit that is the main stumbling block for being unable to get onto the housing ladder. This was the reason that was given by 56% of people who were asked. The pressures that are involved in saving for a deposit is a huge concern and for most it took between two to five years, although in some cases it could take up to ten years to save enough to achieve their ambition.
In spite of all the publicity that it has been given, less than one in three prospective buyers when asked said they would be using the government Help to Buy scheme. This is a scheme initiative that helps people take their first steps on the property ladder, we imagine that much to the disappointment of government sources, 38% had no idea what the scheme is. There is certainly plenty of assistance available, not only the Help to Buy scheme, but help is available when saving for a deposit with the Help to Buy ISA.