"With property prices and interest rates soaring, many buyers face an uphill battle just to save for a deposit, let alone consider their long-term financial well-being"
- Jade Turnstill - Share to Buy
Newly released data collated from over 2,200 respondents via a new survey on sharetobuy.com has revealed that an overwhelming 88% prioritise saving for a deposit over saving for a pension.
This focus on short-term homeownership goals over long-term retirement savings paints a concerning picture for hopeful homebuyers. While lower pension prioritisation is typically associated with the younger generations, Share to Buy's survey data reveals that this is an issue affecting buyers of all ages. The largest group of survey respondents were aged 36–45 (27%), and the second largest was between 46–54 (23%), meaning that many of those currently not saving for their pension are within a decade or two of retirement age.
Additionally, 77% of respondents have not received financial support from family members to help with a deposit, underscoring the challenges faced by those without generational wealth. For single buyers, the barriers are even greater: while 57% of respondents are looking to purchase alone, 65% believe that buying as a single person is unachievable in the current market. 52% of all respondents have savings of £10,000 or less, significantly below the average deposit requirement for homes on the open market, which currently sits at £53,414.
The research also found that 31% have less than £5,000 in savings, followed by 21% having £10,000 or less.
Whilst 57% are looking to buy alone, 65% do not feel that homeownership as a single person is achievable on the open market.
77% of respondents have not received any support from family members to put towards a deposit.
“It's worrying that potential first-time buyers feel they have no choice but to prioritise saving for a deposit at the expense of their future financial security," noted Jade Turnstill, Head of Brand and Content at Share to Buy, "With property prices and interest rates soaring, many buyers face an uphill battle just to save for a deposit, let alone consider their long-term financial well-being.
“Share to Buy is the home of Shared Ownership, Rent to Buy, Deposit Unlock and a number of other schemes designed to help aspiring homeowners find their space,"
Jade concluded, "Our recent survey highlights the need for more accessible, affordable housing options which can help buyers step onto the property ladder with initial lower costs, while also allowing them to maintain contributions to long-term financial goals like pensions.”
