More than a third of adults think buying a property is now completely out of reach, a new study has found.
According to Pepper Money, 36% of people believe they won’t ever be in a financial position to buy their own house.
This goes up to 45% among those with recent adverse credit.
Meanwhile, 22% of adults said they don’t think they’ll have the money to purchase a property for at least five years.
Nevertheless, home ownership remains a common goal, as nearly seven in ten adults who don’t currently own their own property saying they’d like to in the future.
Saving for a deposit a big concern
Nearly one in three people said saving for a deposit is the biggest obstacle to getting on the property ladder any time soon.
In fact, it was the biggest concern among would-be buyers overall, ahead of issues such as affording monthly payments and having a poor credit record.
But interestingly, the study showed that almost one in three people don’t actually know how big a deposit they might have to pay.
Others, meanwhile, are mistakenly believing they need to save for a larger deposit than might be necessary.
Prospective buyers need educating about options
Phil Green, marketing director at Pepper Money, said the study shows there a “huge appetite” for buying a property among hopeful homeowners.
But he noted that there are “several misconceptions about the opportunities to take the first step”, such as shared ownership and right to buy schemes.
“Education about the available options for those with lower deposits can help encourage more people into the market,” Mr Green said.
Written by Moneyappi Team
