It is good to hear that home ownership ambitions in the UK are still strong, despite the difficulties would-be home owners can experience in raising deposits.
According to a new study by HSBC, which questioned more than 10,000 people across nine countries, 74% of UK millennials expect to be property owners within the next five years. This figure is, however, significantly below the global average of 83%.
Slow salary growth and house price inflation mean the British millennial generation face significant challenges compared to its global counterparts when it comes to housing affordability. The average property price in the UK increased by 7.5% in 2016, with official wage growth figures showing just a 1.9% growth.
“This study challenges the myth that the home ownership dream is dead for millennials in the UK,” explained Tracie Pearce, HSBC UK’s Head of Mortgages. “With three in ten already owning their own home, the dream of home ownership for millennials is definitely alive and kicking. In the UK, they face a two-pronged problem of rising house prices and slow salary growth meaning the dream of home ownership is a challenge but not unachievable.”
Financial support from parents can make all the difference when saving for a home, says HSBC, and over a quarter (27%) of millennials who bought their own home turned to the ‘Bank of Mum and Dad’ as a source of funding.
Many UK millennials are also willing to consider making sacrifices to afford their own home. Almost half (47%) of those intending to buy would consider spending less on leisure and going out, and 33% would be prepared to buy smaller than their dream home.
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