Young people relying on inheritance to buy

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A quarter of 18-34 year olds are relying on receiving an inheritance to get on the property ladder, Halifax research has found.

Half don’t think homeownership is a realistic option for their generation, with two thirds (65%) saying they don’t earn enough to afford it.

Martin Ellis, Halifax housing economist, said: “Even with the highest number of first-time buyers in the last decade in 2016, many young people still feel they are running financial gauntlet – saving for a deposit, finding an affordable property in the right area and managing to fund living in the meantime.

“It’s never too early to do some research to help build a better understanding of how much is affordable, the borrowing options available and calculating what’s achievable to help make owning a property more of a reality.”

Unsurprisingly deposits are the stumbling block for more than half of young people.

Even if they manage to raise a deposit, a third feel they would have trouble meeting mortgage criteria.

The average deposit put down for an average first-time buyer home is £32,321, rocketing to £100,445 in London.

In 2016 28% of all first-time buyers with a mortgage chose a 30 to 35-year term, up from 11% in the past decade, which reduces monthly payments.

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Written by: Houseladder