Housing crisis fears as 69% say they’ll never afford a home
With the Chancellor’s next Budget just days away, new research has revealed that seven in 10 (69%) of those that have never owned a home say they will never be able to afford one, sparking further concerns for the rise of “generation rent” amongst Britain’s young.
It was also revealed that Brits are now more likely to fund the deposit for their new home from inheritance than they are by saving jointly with family or friends.
The study, carried out by the UK’s original online estate agent, House Network, showed that even for those young adults that do expect to own a home, the property market can be a daunting place. Nearly a quarter (23%) of 18-34 year olds worry that if interest rates rose they’d default on their mortgage, 20% fear the property bubble bursting, and 11% admit that they’re anxious over the thought of a double dip.
The research, which also explored concerns regarding the house sale process amongst Britain’s first-time sellers, showed that those that have not yet sold a property expect to find hidden fees the most stressful element of selling their home, closely followed by the prospect of the chain breaking down. In contrast, those that have already sold a home regard the chain breaking down as the most stressful element, followed by not getting the right price for their property.
Graham Lock, CEO at House Network, says: “There are so many different costs involved in buying and selling property, which do nothing but put those that are new to the process off; partly because they’re wary of the unknown, but also because all these costs add up. Big ticket items such as stamp duty are unavoidable for buyers, and for sellers the traditional estate agents’ fees are piling on added pressure. According to our study, 68% believe that estate agents should charge a flat fee, and just 12% of those polled believe that traditional high street agents charge a fair price for the service they provide.
“Many don’t realise that some high street estate agents haven’t changed their fee structure since before the property boom, meaning they are charging a percentage of the sale price - this amounts to a much higher cost than it did ten years ago.
“It doesn’t matter if you’re a young first time buyer, a new home owner or a seasoned seller, the housing market can be an intimidating place and those in the sector should be doing more to provide fair, helpful advice to those in need.”
Inforgraphic courtesy of House Network