What are young people sacrificing to get onto the property ladder?

More than half are giving up their weekend social life to save for a deposit

Alex Johnson
Tuesday 04 February 2014 12:08 GMT
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Two bedroom maisonette in Oval Road, Addiscombe, Croydon CR0. On with Barnard Marcus for £110,000
Two bedroom maisonette in Oval Road, Addiscombe, Croydon CR0. On with Barnard Marcus for £110,000

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Just over a third of non-homeowners aged 18-34 are hoping to buy a property in the immediate future and are making changes to their lifestyle accordingly, says a new report.

According to the Post Office, the number of young people looking to buy a first home is fairly static (36 per cent in 2013, compared to 34 per cent in 2012). However, the number who have no intention of buying has doubled over the same period, from five per cent to 10 per cent.

In order to raise enough money to buy their own home, the five main compromises young people are prepared to make are

* Not having a property that is fully ‘ready to move into’ (44 per cent)

* Not buying new furniture and appliances (33 per cent)

* Not living in a trendy area (35 per cent)

* Not having original features in the property (37 per cent)

* Not living close to family (26 per cent)

"For many people owning their own home is a dream they are determined to make a reality, and our report highlights the lengths some will go to," said John Willcock, Head of Mortgages at Post Office. "Since the recession in 2008, people have taken extra steps to save money for a deposit. However, the launch of the Government’s Help to Buy scheme and a raft of affordable loans on the market look to have rallied optimism amongst first-time buyers."

The survey reveals that young men and women have different reasons for buying their own home. Of those young women looking to buy, 30 per cent say they are driven by the desire to settle down and 30 per cent are tired of renting, while for young men the strongest motivation is buying property as a good financial investment (29 per cent).

When cutting back to save money, the first thing to go are takeaway meals (57 per cent) and going out at the weekend (51 per cent). Around 43 per cent say they would consider cutting back on their weekly food shopping and just over one in ten would forego saving into a pension.

Other savings areas include making their own lunch for work (50 per cent), not buying new clothes/shoes (47 per cent), not going on holiday (43 per cent), and giving up their morning coffee (42 per cent).

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