Homeownership not top priority for the younger generation

Posted on Tuesday, May 29, 2018

According to the latest research from TopCashback.co.uk, although the vast majority (95%) of millennials would like to buy a house in the future, 31% do not think it will happen and 29% are only hopeful about their chances. Just 39% are sure they will buy a property.

The uncertainty as to whether they will be able to invest in bricks and mortar means millennials are focusing on financial security and life experiences as savings goals instead. 35% of millennials say a deposit for a house is their main savings goal, but is trumped by building an emergency fund (51%), a savings cushion (43%), achieving financial freedom (40%) and having money to travel and go on holiday regularly (37%).

Millennials’ savings goals

An emergency fund (51%)

A savings cushion (43%)

Financial freedom (40%)

Money to travel / go on holiday regularly (37%)

A deposit to buy a house (35%)

A holiday (25%)

Pay-off mortgage (19%)

Buy a bigger house (17%)

Start a family (14%)

A wedding (13

Similarly, millennials’ main goals in life are to be healthy (49%), have financial freedom (36%) and be financially stable (30%). Buying a house comes eighth on the list at just 19%.

Even of the millennials who are optimistic about getting on the property ladder, just under half (47%) think it will happen in the next five years. The cost of housing rising quicker than salaries (64%), not earning enough money for a deposit (56%) and living costs being too high to save (37%) are giving millennials doubt about getting on the property ladder sooner rather than later.

Millennials want to rent a place with outdoor space

Of the 31%t of millennials who are unsure they will own a property, more than half (56%) see privately renting with a partner as a long-term preference and more than a quarter (26%) plan to rent a place on their own.

With the chances of owning a house off the cards, millennials have alternative goals for the next five years. More than a third (35%) would like to rent somewhere with outdoor space or a garden, three in 10 (29%) would like to rent a property with a car parking space and just over a quarter (26%) would like somewhere they could decorate to their own taste.

Interestingly, in the next five years, 13% of millennials see renting somewhere that it large enough to host dinner parties as a goal.

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