"Our research has shown that it’s simply unattainable for the average worker to be able to afford, and many non-homeowners believe that the government needs to step in to help first-time buyers get on the property ladder"
- Nathan Blackler - Go Compare
Renters and residents are losing faith in homeownership, according to a new study by Go.Compare Home Insurance.
According to the research, six in 10 non-homeowners believe they’ll never get onto the property ladder, with residents blaming the current housing market and economic climate for this. 52% of non-homeowners stated that this was why they felt owning a home was no longer important.
Despite some having doubts about whether they’ll ever buy their own property, most still aspire to putting down roots. 76% of the non-homeowners surveyed said they feel home ownership is still important, compared to the rest who didn’t feel it was.
The average salary needed for a single person to buy a house in the UK is £59,307. However, analysis of ONS data on average salaries across the nation found that shockingly, no industry listed provides an average wage high enough to meet this. Based on these figures, it's unsurprising that 60% of non-homeowners feel they won’t ever be able to buy a house.
Renters pointed to various reasons as to why they feel that homeownership is no longer important. Many feel that homeownership is too big of a commitment (30%) and renting is an easier option (28%), offering them better value for money (17%).
Some felt they had more important things to save for or spend money on (22%), or are concerned that they could lose a lot of money in the long run by buying a home due to changes in house prices (14%).
Nathan Blackler, home insurance expert at Go.Compare, said: “It’s disheartening to find that the majority of renters and residents who don’t yet own a home don’t believe they ever will due to the current economic climate and the shape of the housing market. Despite this, it’s still a goal that most want to achieve, which is why more needs to be done about the issue.
“Our research has shown that it’s simply unattainable for the average worker to be able to afford, and many non-homeowners believe that the government needs to step in to help first-time buyers get on the property ladder. Whether that is achieved through subsidised house prices, stamp duty relief, or improved government schemes such as help-to-buy ISAs, shared ownership or 99% mortgages.”
