First time buyers in Britain staying longer before moving up housing ladder
First time buyers are staying in their home for longer before moving up the property ladder in the UK and today they are 1.5 times more likely than their parents to stay for a decade, new research has found.
One of the reasons could be financial as the survey from self-storage company Space Station also found that one in three buyers struggle to save a deposit compared to only one in 20 first time buyers 20 to 30 years ago.
It also found that second steppers, those moving up the ladder, also face issues with finance and say that they struggle to buy their second home without support from their parents. It means that overall 43% are now considering improving the home they have rather than moving.
When asked if they planned on living in their first house for more than 10 years, some 39% of millennials said that they plan on staying put, compared to only 26% of those who bought their house 20 to 30 years ago.
While 33% currently saving for a home said they had been forced to delay by the challenge of saving a deposit, only one in 20 people, 5%, who bought their first home between 1988 and 1998 reported the same struggle.
It isn’t just financial pressure to buy their first homes that is making millennials consider making their first home their forever property, but also the second round of financial problems that comes with finding a second home, the survey suggests.
Jessica McDonnell, 27, from Leeds recently bought a house with her husband after five years of renting together.
‘I think the younger generation definitely have it harder when it comes to saving for a house and we are having to do so much more just to get on the housing ladder,’ she explained.
‘It doesn’t surprise me that the younger generation are now dismissing starter homes in favour of longer term investments. I bought my current house knowing that I have plenty of land to be able to extend my property and grow into it. Although it would be lovely one day to get another property, we know that it may not be financially viable.’
Vlatka Lake, marketing manager at Space Station, said:
‘We help a lot of people with their house move when they require storage, so we know all too well about the struggles and sacrifices people have to make in order to buy their first and second home.
‘As the prices of houses shoot up, it’s not surprising to see so many people deciding to look at extending their current space at home, rather than move house entirely. It just shows how attitudes to buying a house have really changed over the years and how hard it is for younger people today.’
Kindly shared by Property Wire