Nearly half of young adults have given up on buying home in next decade
Around 42% of adults aged 18 to 39 years old have given up on the idea of buying a home in the next 10 years, research has found.
According to research from Zoopla, which surveyed 2,000 people, approximately 38% of those earning £60,000 per year have also given up on affording a home in the next decade.
Zoopla has coined this cohort as ‘Guppies’, young people, many with large salaries and professional careers, who have given up on property.
The main barriers to home ownership were the cost of living crisis at 64%, rising house prices at 51% and 49% pointed to higher mortgage rates.
One in five said that they would definitely be able to buy a home in the next decade and 14% are currently planning to buy one or are in the process of doing so.
Giving up dating to buy a home
Among the latter, 85% said they made financial sacrifices, with 24% giving up holidays and 30% curbing socialising.
A quarter stopped saving for their future and 19% have given up dating or being in a relationship to buy a home.
Young people looking at or in the process of buying are also adjusting their expectations, with 69% saying they compromised on their property.
The most common compromises were buying in a different area than they would like at nearly a third, the home not being in as good condition at 18% and an inability to afford spare rooms at 17%.
The report continued that just under a quarter of those aged 25 to 34 own a home, and only 1.4% of those aged 24 do.
It added that non-home owning under 40s were more likely to be living with their parents at around 14%.
Around 37% said that they would be able to afford a home if they returned to the place where they grew up, rising to 49% in Scotland and 45% in the Yorkshire and the Humber.
This falls to 27% in the South West and a third in the South East.
Alternative homebuying routes
Young people are looking at alternative ways of buying a home with nearly a third of under 40s who do not own a home open to part ownership or a Help to Buy-like scheme.
Around 18% would be open to buying with a friend, colleague or sibling, 20% would look at buying a near derelict home and renovating it and 19% would consider building a home themselves.