Young people in South West struggling to get on property ladder

A recent nationwide study has revealed figures that show that young people are struggling to find their place on the property ladder, perhaps due to their lack of understanding about the buying process and the schemes and support available to them as first-time buyers.

The study was commissioned by life insurance provider Beagle Street, and surveyed 2000 UK residents age 18-40 years old who have never owned a home.

Of those surveyed, 80% said they hoped to be on the property ladder at some point, and only 3% said they never wanted to buy a home. Most of the people surveyed in the South West were renting privately, and around 30% were living with family.

This shows that the desire to secure a home purchase is certainly there, so what is it that is preventing newcomers from finding their foothold?

The first reason could be the price of housing. Despite predictions of a post-Brexit crash, UK prices have remained on the rise, and the trend is set to continue. In September 2016, the average house price was £217,888.

Securing a deposit for a house is not easy for young people. Not everyone is fortunate enough to win big or land a jackpot job. Deposits for homes are typically around 10%, making for a significant number of thousands that a first-time buyer would have to save.

Despite this difficulty, many people who were surveyed are trying their best to save. In those surveyed in the South West, 67% were paying into a savings account or ISA, with 55% paying in every month. One in five had already saved over £5000, and were well on their way to having enough for a deposit.

Unfortunately, apart from the saving efforts of potential homeowners, only 6% felt like they were well-informed about the support that is available for first-time buyers.

There are a number of government schemes available that are designed to help first time buyers including equity loans under the Help To Buy, the Right To Buy scheme, shared ownership, and starter homes.

But it is doubtful whether young people are making the most of these offers, with 73% suggesting that it's difficult to know what solutions are available, 65% saying the schemes are not well publicized, and 54% saying that there is too much jargon and that the schemes are difficult to understand.

The survey suggests that many young people in South Wales may have the earning and saving potential to buy a home, but that they lack the necessary information or understanding of the buying and deposit process, as well as the available support and schemes.

The findings came shortly after the government released figures that revealed that home ownership in the UK has fallen to its lowest in 30 years. In 2016 under 63% of homes were inhabited by owner-occupants. Meanwhile, the private renting sector has doubled.

With more information and more accessible schemes, young people in the South West could more easily get their foot on the property ladder and put down a deposit on their first home.