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Homeownership less of a priority as goal seems out of reach – ING

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  • 04/02/2020
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Homeownership less of a priority as goal seems out of reach – ING
Some 82 per cent of Brits are putting goals such as raising a family, paying off student debt, living in a convenient location, funding hobbies or travelling, ahead of saving for their first home, a survey has found.

 

According to the ING International Survey, 79 per cent of Britons think it is “increasingly difficult” for first-time buyers to get onto the property ladder, although 71 per cent agree that financially, it is better to own than to rent. 

The research was conducted by Ipsos and quizzed 15,146 respondents across 15 countries including Austria, France, Germany, Italy, Poland and the UK. 

Overall, 58 per cent of British respondents said the UK housing market was “on the wrong track” with 43 per cent expecting house prices to increase over the year.

 

Longer wait   

Some 92 per cent of respondents who are renting and have never owned a house said they did want to own eventually.

However, when it came to reasons why it may not be an immediate achievement, 80 per cent cited high prices, 71 per cent were worried about taking on such a huge debt and 58 per cent felt interest rates could change over the life of a loan suggesting they felt they needed more time to save.  

Of those who rent and have never owned, 39 per cent said they do not expect to be able to buy.  

Those who do expect to own a house in the future said they expected to do so at a later stage in life.

Some 28 per cent of 25-34-year-olds believe they will have to wait until they are older than 35 before buying while just nine per cent of non-owners anticipate buying before the age of 30.  

Jessica Exton, behavioural scientist at ING, said:Lots of us want to own our own home one day. Not only because it’s considered to be a smart financial decision, but because home ownership is an emotional and personal goal.  

“But houses are expensive, and many perceive them as only becoming more so. Some are consequently taking longer to save their deposit and buying later in life.

“Given these extended timeframes, it’s not necessarily surprising that many are finding additional reasons to spend and save in the shorter term. Funding travel today, while planning to buy a home soon, for example.”

 

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