Finance the main worry of young homeowners

Financial worries are the main concern of today's generation of prospective homeowners, a new survey has found.

By The Newsroom
Monday, 16th May 2016, 3:24 pm
Updated Monday, 16th May 2016, 3:31 pm
New build
New build

The report by the Home Builders Federation also highlights the differences in attitudes between young and older buyers.

According to the survey, 84 per cent of 18 - 34-year-olds want to own their own home, but huge financial obstacles lie in their way. 73 per cent had concerns over raising a deposit; while 69 per cent cited property prices as the main barrier; and 53 per cent believed they would have difficulty getting a mortgage.

The data also shows that one in four of the 18 - 34-year-olds were completely unaware of any government support available to them, such as the 5 per cent deposit ‘Help to Buy equity loan’ scheme or the Help to Buy ISA.

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Younger people are also more concerned than their elders about household costs - 67 per cent of 18-24 year olds taking this into account when considering whether to buy compared to 40 per cent of 35-44 year olds. The younger generation are also much more likely to consider buying a new build, which are up to 50 per cent cheaper to run than some second hand homes. 55 per cent said it was likely they would consider buying a new build, compared to just 23 per cent of over-45s.

The report also reveals the amounts homeowners spend on upgrading properties. 47 per cent of people spend over £10,000; more than half of this expenditure being on renovating bathrooms or kitchens. 13 per cent of people spent over £40,000 upgrading their home - the Home Builders Federation estimates it costs around £45,000 to upgrade a second hand home to the standard of a new build. Only 1 per cent of homeowners said that they didn’t have to spend money to make improvements when moving house.