One of Britain’s largest mortgage lenders has discovered that 70% of young people now believe that the dream of ownership is over for their generation.
Santander has conducted the largest ever survey of potential start-ups and said that according to own numbers, less than 25% of 18 to 34 year olds in 2026 will be able to buy a house.
The Spanish bank said that although 91% of young people interviewed still want to own a home, more than two-thirds said this was unlikely unless they received the deposit from their parents. In 2006, around half of young people under 34 were able to access the real estate ladder, according to the bank.
The study showed that the sharpest decline in homeowners’ home ownership was first among those with a median income – those who earned between £ 20,000 and £ 30,000 this year. Of the new buyers who could have bought, two-thirds reported with a household income in excess of £ 40,000.
Miguel Sard, director of Santander Mortgages, said: “It is clear that while striving to own a home is just as strong as in previous generations, it is a dream that seems to be increasingly out of reach. Without change there is a threat of change home ownership in the UK for the next decade to be reserved only for the richest young buyers This report should be a wake-up call for industry and government to think more creatively to keep the homeowner’s dream alive for the next generation of starters. “
Sard said that the average age of a first buyer has risen from 25 to 33 years in the last two decades and that 40% have already founded a family. As a result, Santander discovered that the most wanted real estate for the first time buyer is now a three-bedroom house.
The report, entitled The Future of Homeowners’ Dream, also called on industry and government to revise the mortgage market.
It said that financial authorities should consider more flexible criteria for affordability. It has also called on the government to reduce the stamp duty to encourage those considering to reduce the family home that they have outgrown.
Half of the 5,000 non-homeowners between the ages of 18 and 40 who were interviewed for the study said that owning a home was one of their main goals in life – more than having children (27%) or getting married (19%).
Santander discovered that 42% of the potential first buyers had saved nothing at all for their first home. Men had saved twice as much as women (£ 11,660 compared to £ 5,620), while one in three men and nearly half of the women (48%) had saved nothing.