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.

Monday, 16th May 2016, 15:24 pm
Updated Monday, 16th May 2016, 15:31 pm
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.

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.