Young people put faith in property

Homeowners up and down the country have been feeling the pinch since the credit crunch first bit, but it seems the recession has done little to quash young people's determination to get their foot on the property ladder.

young people still investing in property

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According to research by Yorkshire Building Society, first-time buyers still see buying property as a sensible financial decision, with almost 50 per cent of those who bought their home within the last 12 months saying they felt it was a good investment.

Those who bought their first home before the economic downturn, on the other hand, were less likely to agree, the survey found.

Despite most young people needing a deposit of around £26,000 in order to get on the first rung of the ladder, first-time buyers were striving to save the money, with nearly two-thirds of those who had managed to buy in the last year putting money away for the all-important lump sum.

That figure is considerably higher than that of five years ago, when only 41 per cent squirreled money away for their deposit, proving that post-credit crunch buyers are perhaps a more financially prudent bunch.

Chris Smith, from the Yorkshire Building Society, told the Daily Express: "Today's first-time buyers are facing a squeeze on incomes and pay rates that are not keeping pace with inflation.

"But despite the economic environment, more people than ever are looking towards bricks and mortar to provide them with certainty."

What do you think? Is buying property still a good investment or has the threat of rising interest rates put you off? Leave your comments below...