Study of 2,000 young adults finds disciplined savers are still unable to get onto the property ladder amid rising costs.
A survey of 2,000 non-homeowners, aged between 20 and 35, found many are tracking their spending and cutting back on non-essential purchases, yet still can’t afford to buy their first home.
Commissioned by NHG Homes, the survey highlighted 48% said they actively try to avoid buying stuff they don’t need, while 39% track their outgoings and 32% save regularly.
Despite this, more than a third report having less than £50 left at the end of the month, and one in five say they have nothing left at all.
Meanwhile, 66% agreed with the statement: ‘I feel like I am doing the right things financially, but still not getting ahead.’ The number rises from 62% among 20-24-year-olds to 68% of those aged 30-35.
When asked about the causes of financial pressure, most pointed to wider economic factors. Some 61% cited the cost of living, 30% housing costs and 30% low wages relative to expenses. Only 15% said personal spending habits were the main problem.
On housing, just 15% of respondents said they think homeownership is achievable. A further 36% said it remains out of reach, while 27% think it might be possible, but only in the long term.
The latter figure drops to 13.5% among 30-35 year olds.
Diana Alam, director of sales and marketing at NHG Homes, said: ‘These findings are both striking and, frankly, heartbreaking.
‘Time and again we hear from aspiring homeowners who are doing absolutely everything right, saving diligently, budgeting carefully, going without, and yet still feel completely locked out of owning a home. The barriers they face are real, they are structural, and they are not of their own making.’
While finances themselves are a big concern, 62% said money problems affect their daily life ‘often’ or ‘always’. A similar number reported an impact on mental health, and almost half said it affects their sleep and social life.
In a bid to help, Alam explained NHG Homes are launching ‘The DOOR Club’.
‘No one should feel alone in this struggle,’ he said. ‘We want every aspiring first-time buyer to know that their situation is not unusual, it is not their fault, and there are practical options, including shared ownership – often requiring much lower deposits than buying outright.
‘The DOOR Club will provide expert advice and support through our Finance Glow-up Event and an information hub on our website.’
Image: Sasun Bughdaryan/UnSplash
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