Government urged to act to secure ‘home ownership dream’
The government has been urged to act to help first-time buyers as new forecasts revealed that by 2026 just a quarter of people aged between 25 and 34 will own their own home.
A report by Santander found that home ownership within that age bracket will have dropped from 55 per cent 20 years ago, to 26 per cent.
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In London, 92 per cent of people still aspire to own their own home, but 77 per cent said the “home ownership dream” is over for young people.
The bank called for new initiatives to help those unable to access family support or ineligible for existing government schemes.
The lender said a government-backed guarantee to banks, which would reduce or remove the need for certain first-time buyers to provide a deposit, could help more people onto the property ladder.
A survey of 5,002 prospective first-time buyers aged between 18 and 40 years old found that raising a deposit is the biggest hurdle to getting on the property ladder.
In total, 50 per cent of Londoners considering buying a home are relying on money from inheritance to boost their deposit, the survey found.
Miguel Sard, managing director at Santander Mortgages, said: “It’s clear that while the aspiration to own a home is just as strong as in previous generations, it’s a dream that is looking increasingly out of reach.
Read more: Most home purchases in 2018 made by first-time buyers
“Without change, home ownership in the UK is at risk of becoming the preserve of only the wealthiest young buyers over the next decade.
“This report should be a wake-up call for industry and the government to think more creatively to keep the home ownership dream alive for the next generation of first-time buyers.”
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