Young people giving up on home ownership

The number of young people saving toward deposits has fallen, with many in their 20s and 30s resigning themselves to not getting onto the property ladder. Halifax's Generation Rent report shows that only 43% of renters are currently saving toward a property purchase, while 57% are planning to rent long-term. This resignation comes despite the level of first-time buyers climbing to its highest rate in eight years in 2014, reaching 311,500 new buyers, with an improving economy and Government schemes helping people onto the property ladder. London has the lowest rate of young homeowners, with only 39% of 25-45 year-olds in property they own, with 82% of the capital’s renters expressing a fear that they will never own a property. Halifax data shows that those planning to buy are willing to wait an average of 5.35 years to get on the property ladder, where recent homebuyers spent an average of 3.6 years saving. The Times suggests the number of people planning on staying in the rental sector for an extended period means the assumption that “Britain is obsessed with home ownership” may require re-evaluation.