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Bank of Mum & Dad puts up the shutters!

Home ownership aspirations in London and the South East are to dim for ‘generation rent’ over the next five years, it is claimed.

Sheila Manchester

Whether the pot is empty or just that global travel and fine dining are more attractive to parents, it seems that the ’bank of mum and dad’ is running dry, according to new research.

Home ownership remains the ultimate goal for ‘generation rent’, but aspirations to buy a home within the next five years have significantly dimmed compared to just a year ago as the ‘bank of mum and dad’ runs dry – according to the second annual Collyer Bristow Home Ownership Attitudes and Aspirations report for London and the South East.

Headline findings:

  • 52% of non-home owners surveyed hope to purchase a home in the next five years, compared to 62% in 2018.
  • 40% do not believe home ownership is a realistic goal in the next five years, compared to 29% in 2018.
  • The ‘bank of mum and dad’ helped 45% to buy a home, up from 32% in 2018, but only 25% of those expecting to buy in the next five years believe mum and dad will be able to help.
  • Just 8% have no aspiration at all to own their own home.
  • Price (77%) trumps location (59%) when choosing a home.
  • Digital connectivity (28%) is seen as more important than environmental considerations (25%) and curb appeal (14%). However, digital connectivity is more important to men than women.

The annual report is based on the hopes and aspirations of a panel of 564 people aged 18 to 44, in London and the South East living in rented and owned accommodation.

The report finds that men are more confident (62%) that they will own their own home within the next five years than women (47%), and men are more likely (51%) to receive help from their parents than women (30%). Just 8% have no aspiration to own their own home at all.

Home ownership aspirations appear to fade as individuals get older, with 65% of 18-24 year olds believing they will own their own home within the next five years, falling to 55% amongst 25-34 year olds and 43% with 35-44 year olds.

Alex O’Connor, a Real Estate Partner at Collyer Bristow said: “The past 12 months have seen house prices slow or stall and rents increase, so it is no real surprise that our dream of home ownership remains undiminished. But the uncertainty in the market, no doubt caused by our protracted exit from Europe and the General Election, is being felt.

“There has been a marked fall in the number of people who believe they will own their own home within the next five years – confidence in the housing market has yet to return.”

Downloand a full copy of the Collyer Bristow Home Ownership Attitudes and Aspirations.

 

January 31, 2020

One comment

  1. It all looks doom and gloom, and in my day everyone was a first time buyer at around 21 to 23 years of age. Quickly trading up as equity in property sometimes increased by 15% in a year enabling a higher step up into a bigger home.

    But, that was the late 1980’s, and now the big buzz is co-living, the idea of buying your own castle and pulling up the drawbridge is not the general sentiment of many of the buyers of today.

    Yes, national house builders are still churning out the same type of first-time buyer stock akin to the 1980’s, with a modern twist, but, more are looking at the co-living market, realising that the buying generation is looking for a different environment to live in.

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