More than half of Brits don’t intend to buy their own home
The falling rate of owner occupation in the UK is likely to continue, according to the latest survey from Moneysupermarket.com.
Its results reveal that only 45% of all Brits and just 30% of Scots who don’t own a home say that they intend to buy at some point. Perhaps optimistically, 61% of Londoners say that they will buy a property in the future.
Overall 35% have given up on the idea of ever owning their own home, but that figure has reduced by 6% from this time last year. An extra 1.5 million now believe they will get on the property ladder at some point, possibly as a result of Government assistance via schemes such as Help to Buy.
The average age UK house hunters estimate they will be able to buy their own home by is 37 years old, increasing to 38 for those looking to buy in the capital, and 42 years old on average in Scotland.
MoneySupermarket calculated that the total number of mortgage deals available to first-time buyers is now 1,565 – up 17% on this time last year, while the average interest rate charged on first-time buyer mortgages has dropped 0.59% year-on-year in that time.
But it says the average loan to value (LTV) for first-time buyer mortgages currently stands at 76%, down from 78% in April 2012. Moneyfacts warned earlier today that mortgage fees have reached a 25 year high.
Clare Francis, mortgage spokesperson at MoneySupermarket.com said:
“Homeownership is something millions of people aspire to so it’s encouraging to see an increase in the number of people who hope to one day own their own home, even if though may feel a long way off for many. “The Bank of England’s Funding for Lending scheme has provided a real boost for the mortgage market in terms of the number of products available. However, the main beneficiaries are those with large deposits so it is understandable that so many aspiring homeowners still think it’s going to be difficult to get onto the property ladder. And even though the government’s new Help to Buy initiative is aimed at giving help to these people it is evident that many are sceptical that it will make a significant difference.”