25% of young non-homeowners relying on inheritance to buy first property
One in four young people who do not own a home are pinning their hopes on an inheritance to help them on the property ladder, research has found.
Some 25% of 18 to 34-year-olds are relying on an inheritance to buy their first home, according to Halifax. The same proportion (25%) think they will never own their own home.
Nearly half (48%) of those surveyed think it is harder than ever to get on the property ladder - with nearly one in five (18%) saying they would consider leaving the UK to buy their own home.
One in seven (14%) young non-homeowners think they will be renting for the rest of their lives. Two-thirds (65%) of those surveyed said they do not earn enough to buy their own home.
Various government schemes have been unveiled in recent years to give people a helping hand onto the property ladder, including Help to Buy and Lifetime Isas, which are set to launch in April. A housing white paper has also recently been launched to help home buyers and renters.
Figures from the English Housing Survey recently showed that one in five households in England is living in private rented accommodation, while home ownership has fallen to its lowest level in 30 years.
Home ownership eased down from 63.6% in 2014/15 to 62.9% last year - the lowest proportion since 1985 and eight percentage points down on its peak of 70.9% in 2003.
Martin Ellis, a housing economist at Halifax, said many young people feel they are running a "financial gauntlet" - by saving for a deposit, finding an affordable property in the right area and funding living costs.
He said: "It's never too early to do some research to help build a better understanding of how much is affordable, the borrowing options available and calculating what's achievable to help make owning a property more of a reality."
Some 1,500 18 to 34-year-olds from across the UK took part in the research.
Here are some tips from Halifax for would-be home buyers:
:: Try out calculators and tools: you can work out how much you could borrow, how much deposit you would need and what monthly payments would be
:: Work out your mortgage options. A mortgage adviser can give a clearer idea of your options. Some lenders will allow first-time buyers to borrow up to 95% of the property value, or you may have someone to guarantee the mortgage.
:: Do your research on any schemes or incentives that could make buying a property in the area you want more affordable such as shared equity.
:: Create a money plan. Working out how much you will need for monthly costs will help you understand kind of mortgage you can afford, factoring in bills and expenses.
:: Check your credit score a year before you plan to get a mortgage and keep track of it.