75% of young Brits believe they will never be able to afford to buy their own home, according to a survey carried out on behalf of Shelter and British gas. So even though the majority of young people aspire to own their own home, most now recognise that this is an impossible dream and living in the private rental sector is the only way forward.
Housing Shortage in the UK
Not surprisingly, the Chief Executive of Shelter, Campbell Robb, is vocal on the subject:
“We are seeing a generation of people now in their 50s or 60s who are looking at their children, and their children will be worse off than they are. That is the first generation since the Second World War that we seeing that happen to, and that is primarily because of the housing market.”
13 Years to Save for a Deposit
House price inflation is now at 50% whereas wages have only risen by 22% during the same period. Without assistance, it now takes the average single buyer around 13 years to save up a 15% deposit for their first home. In cheaper parts of the UK, this wait drops to around 8 years, but in London, a single buyer would have to save up for 46 years before they could afford to buy a home. Couples are in a better position, for it takes them less time to save up. Two people saving together can realistically expect to have enough money saved in 3.5 years, although in London it would take 8 years.
