A recent study of 2,000 adults aged 18-29 has revealed that the typical under 30 in the UK has managed to save approximately £9,300 towards a deposit for their first home. More than half of the respondents (55%) stated they would be willing to move to a less desirable location if it meant they could become homeowners.
However, the study also highlighted concerns among young adults. Three-quarters (75%) worry that house price increases are surpassing their salary growth, making it even more challenging to achieve homeownership. Additionally, 76% believe that the government should introduce more incentives to help young adults get on the property ladder.
The research was conducted for Shared Ownership Week, an event aimed at providing advice on utilizing the shared ownership scheme to fulfill homeownership aspirations. Shared Ownership allows buyers to build equity on the share of the property they own while paying reduced rent on the remaining portion. Over time, they can purchase additional shares until they eventually own the home outright.
Despite the potential benefits of shared ownership, the study found that 40% of respondents were unfamiliar with the concept. Furthermore, 70% of those surveyed have sacrificed luxuries to bolster their savings, while 35% feel that the pandemic has had a positive impact on their bank balances.
However, the cost of housing in the UK is considered “seriously unfair” by more than eight in ten respondents (83%). Shared Ownership Week aims to raise awareness of shared ownership as a viable option for many young people and encourages them to explore this route towards homeownership.
Shared Ownership Week has partnered with interiors influencer Kelsey Heinrichs to provide insights into styling and furnishing a first home on a budget. Heinrichs emphasizes that even with limited funds, it is possible to achieve desirable interior design results, and she looks forward to sharing her tips and guide to affordable home styling.