Study shows non-homeowners expect to continue renting
10 July 2012
A recent published study by the Bank of Scotland has shown a pessimistic attitude by 20-45 year old Scots who have yet to get onto the property ladder. The study also points to the lack of financial cushioning for younger Scots who for varied reasons have little or no savings, let alone enough for a deposit for a property purchase.
The bank questioned 737 people and the results show that for many, who may hope to become homeowners, this could remain a dream as prices and deposits are too high compared to average earnings. 45% of those surveyed think that within a generation, the typical British view of the need to own a home will have given way to a nation who will have to rent. 39% would like to buy, but don’t think they will ever be able to afford to. Furthermore, 89% thought that even if they could buy, a property purchase in today’s economy was too risky.
It is well documented that many young people are staying at home or even returning home in order to save for a deposit. 25% had done so; given that 31% of those surveyed said they had no savings at all, staying at home with Mum and Dad, and presumably paying no rent means the only chance of saving for the average deposit. In the Scottish market, this is just over £21,000, with the average price of a flat (a typical first-time buy) in Scotland almost £114,000 based on figures from the first quarter this year.
If you are a first time buyer and looking to take your first step onto the property ladder, Inksters can assist you. Don't hesitate to contact us on 0141 229 0880 or send Brian Inkster or Louise King an email.