The overall number of first-time home buyers across the United Kingdom has plummeted, with the breakdown into specific demographics revealing even more precipitous drops. Home ownership has become much more difficult to tackle in the last two decades, with average wage-earnings stretching to cover only about 10% of an average house purchase. Contrast this to almost 25% coverage, the norm back in 1999. It’s little wonder that more UK denizens are opting to stash their money into savings, or use it for short-term gratification.
The ability of UK citizens to save is also significant. Study shows that nearly half of the individuals in the 34-54 age bracket are unable, by and large, to put together a deposit. About 20% of the over 55 brigade are opting out of buying and renting instead. Sadly, a hefty amount of renters are finding they must allocate more towards rent than many older individuals did to fund their first home. Deposits are larger and costs associated with both renting and buying are escalating, making savings a complicated task, or a mere wish, for many. Those successful at buying are often doomed to settle for a less attractive site, or a smaller property.
Key Takeaways:
- Since 1994, the number of individuals buying a first-time house in the United Kingdom has dropped by 24%.
- The demographic of lone purchasers shows an even more alarming plummet, as it has dropped an overall 45%
- More UK citizens are electing to sock their monies away in savings, or spend it outright in short-term recreational pursuits.
“Due to the rise of house prices, larger deposits and increased rental costs, people are finding it increasingly harder to save.”
Read more: https://www.propertywire.com/news/uk/study-reveals-significant-fall-number-first-time-buyers-uk/