The UK Is becoming a Nation of Renters

by Lorraine Augustin Internet Marketing A new report shows that half of the people aged between 20 and 45 years old in the UK, think that Britain is turning into a nation of renters, instead of property owners. Only 14% of young people, under the age of 45 are saving for a deposit for their own house and 24% of parents have had their adult children move back in with them.

The younger generation are still very downbeat about the chances of ever owning their own home. It is also having a knock on effect on the financial security of parents as they are often having to stump up the deposit for a house for their children or are having to accept their grown child back into their own home.

Two in five people under the age of 45 would like to buy their own home but do not believe they will ever be able to. Only 31% of those asked were seriously considering buying a house within the next 5 years and half thought that the UK would just become a nation of renters.

The three main barriers to house ownership are the large deposit needed, the high property prices and job insecurity. The current economic climate is also discouraging first time buyers and many feel it is a risk to buy a home in today's economy.

The average deposit needed for a first time buyer is around £25,000, yet the research found that a quarter of those under 45 not yet owning their own house have less than £3000 in savings and 35% have absolutely no savings at all. But it should be noted that 80% admitted to spending more than they should on other items, when they could have put that money aside for a deposit.

Around a quarter of young people are reliant on money borrowed from friends and family to buy a house, compared to around 11% from the last generation. But when the parents were surveyed, 80% felt that the younger generation should be spending less on holidays, cars and gadgets and instead be saving for a deposit and trying to get mortgages.

Created on Jul 14th 2012 01:46. Viewed 64 times.

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