According to new research from Space Station, a self-storage company, first-time buyers are staying in their homes a lot longer before climbing up the property ladder in the United Kingdom. When compared with their parents, they are 1.5 times more likely to stay for a decade in their first home.
It is thought that this could be due to their financial situation, as the research has also shown that one in three buyers struggle even to save money for a deposit compared to one in 20 first-time buyers around 30-years ago.
It has also been found that those moving up the ladder are faced with financial issues, as they struggle to purchase a second home without the help of their parents. This means that 43% of first-time homeowners are looking more towards improving their homes than looking to buy their second home. When they were asked if they were planning on staying in their home for more than ten years, 39% of millennials said that they were looking to stay there for the foreseeable future, when compared to 26% of those who purchased their homes 20 to 30 years ago.
Although 33% of people are currently saving for a home, they have said that they have been forced to delay as they are struggling to save for a deposit; only 5% who bought their home between 1988 and 1998 reported the same problem.
However, financial pressure isn’t the only problem first-time buyers are having, as they also receive a second lot of stress which comes with trying to pay the mortgage on their home whilst saving for a deposit for their next.
Jessica McDonnell, 27, who has recently purchased a home in Leeds with her husband, has been renting for five years beforehand and said:
“I think the younger generation definitely have it harder when it comes to saving for a house and we are having to do so much more just to get on the housing ladder.
“It doesn’t surprise me that the younger generation are now dismissing starter homes in favour of longer-term investments. I bought my current house knowing that I have plenty of land to be able to extend my property and grow into it. Although it would be lovely one day to get another property, we know that it may not be financially viable.”
Vlatka Lake, marketing manager at Space Station, said:
“We help a lot of people with their house move when they require storage, so we know all too well about the struggles and sacrifices people have to make in order to buy their first and second home.
“As the prices of houses shoot up, it’s not surprising to see so many people deciding to look at extending their current space at home, rather than move house entirely. It just shows how attitudes to buying a house have really changed over the years and how hard it is for younger people today.”
With so many options on how to get a foot on the property ladder, much of the younger generation are purchasing larger homes, so that they don’t need to move in the foreseeable future. Meanwhile, options like the Help to Buy Scheme and shared-ownership homes are a good option for those struggling to save up a huge deposit.
If you have been lucky enough to buy your first home, but want to use your money towards extending it, Martin Perry Associates can advise you on planning applications in Cornwall, so please do not hesitate to get in touch on 01579 345 777.