Does the millennial generation still plan homeownership?
Despite prevailing assumptions about homeownership, three quarters of millennials from around the world still intend to buy their first home in the next five years. A study of over 100,000 young people from nine different countries revealed that millennials still have a generally positive attitude towards buying a home, even in the face of high house prices.
But how does the UK compare? Out of the nine countries surveyed by HSBC, the UK came eighth with 74% of millennial non-owners intending to buy in the next five years, just under the three-quarters average.
31% of millennials in the UK already owned a home, 9% lower than the global average of 40%. For those who don’t but intend to buy, nearly half (47%) would consider spending less on social events and leisure to help save for a deposit.
This challenges the idea that UK millennials have become apathetic towards homeownership. Instead, it seems the security and satisfaction of homeownership is still attractive to those renting or living at home saving for a deposit. Putting that first step onto the property ladder is a challenge, but low interest rates and long term security still makes homeownership a desirable goal for many people.
If you or someone you know would like to find out more about the schemes and support available for young people dreaming of homeownership, contact our adviser today.