Financial worries dominate the thinking of today’s generation of prospective home buyers in the UK according to the a new report and survey published by the Home Builders Federation.The survey also highlights the change in attitudes to home buying between young and old.
The survey shows that whilst 84% of 18-34 years olds still want to own their own home, there are huge financial obstacles to realising their dreams. 73 per cent cited the difficulty of saving for a deposit; 69 per cent property prices; and 53 per cent the difficulty of getting a mortgage.
According to the survey, one in four 18 – 34 year olds are totally unaware of any government support available to them, such as the 5% deposit ‘Help to Buy equity loan’ scheme or the Help to Buy ISA aimed at helping young people save for a deposit.
The survey also found that younger people today are more concerned than their elders about the running costs of homes with 67% of 18-24 year olds taking this into account when considering whether to buy compared to 40% of 35-44 year olds. Younger people are also much more likely to consider buying a new build, which are up to 50% cheaper to run than some second hand homes – with 55% saying it is likely they would consider buying a new build compared to just 23% of over 45s.
It also identifies the huge amounts of money second hand homebuyers spend on their properties with 47% of people spending over £10,000, and more than half incurring the expenditure associated with replacing bathrooms or kitchens. 13% spent of people spent over £40,000 upgrading their home. HBF estimates it costs around £45,000 to upgrade a second hand home to the standard of a new build.
HBF executive chairman Stewart Baseley said: “In the midst of a housing crisis, the prospect of getting on to the property ladder can seem like a distant possibility to many people. But there are options available to today’s young people. Due to Government schemes buying a new build home is a real possibility for people.
“New build homes have so many great benefits, from the high build quality and brand new fixtures and fittings, to the low running costs and added bonus of a 10 year warranty. But the real benefit for many first time buyers is the affordability of the whole process.
“Schemes like Help to Buy really make home ownership an option for many who it would otherwise be an impossible dream. And once in a new build, everyday living in terms of running costs, bills and not needing to spend thousands on upgrades mean people can enjoy living in their new home and not have to scrape by.
“We really hope that New Homes Week 2016 will help to promote new build homes to a brand new audience and open people’s eyes to the many reasons why they should buy new. We are urging people not to be put off by dated misconceptions, but to go and actually visit a new build home and see what is actually available.”
Source : HBF