Changing property market "in danger of splitting the UK in two"

Generation Rent are giving up on saving for a home

Only a third of young people are now prepared to save for a deposit for more than three years before abandoning their plans, according to a new report from Halifax.

According to the report's authors, the problems involved with buying a home such as finding money for a deposit which face those looking to get onto the property ladder are such that "there is a danger of splitting the UK in two between those who can and cannot afford to buy a home". 

The figures show that:

* 71 per cent  of 20-45 year olds feel that country is in danger of being divided by social and economic differences between homeowners and non-homeowners

* Over half believe that Britain will become a nation of renters within the next generation

* Just under one in three are only prepared to save for three years to build up the deposit on their first home

Indeed, a fifth of non-homeowners aged 20-45 have already given up on the goal of owning a property, a figure that rises to 43 per cent among 40-45 year olds.  And 57 per cent of non-homeowners are worried that they will be unable to retire if they have to rent all their life.

Craig McKinlay, Mortgages Director at Halifax said: "We are seeing a change in the social landscape of the UK, with a widening split between those who can and cannot afford to buy a home.

"Homeownership is clearly still an important goal for a lot of people, but fewer and fewer people consider it to be something they'll be able to achieve. Renters say they never feel properly settled and fear they will struggle to retire, so the social impact of this shift is significant. More needs to be done to redress the balance, both through making homeownership more accessible and offering more stability through the rental sector.”  

Two thirds of young people questioned in the report say that buying a house means people are more settled in their environment, with nearly half feeling it is important for parents to start a family in a home that they own rather than rent.

The report also reveals a lack of understanding of the support available to first-time buyers through the Government schemes such as NewBuy and Help to Buy. While many welcome the schemes, aroun 40 per cent do not know if they will help. Despite the launch of the schemes, many continue to turn to the Bank of Mum and Dad. Nearly a third of parents have dipped into their savings to help their children buy a property, 12 per cent have given their child some or all of their inheritance early, and 6 per cent  have dipped into their retirement fund.

Discover more property articles at Homes and Property
Arts and Entertainment
Lionel Richie has made the top spot after a strong Glastonbury performance
musicAnd what's more it's the last Sunday night chart topper - ever!
News
news
Life and Style
The collection displayed Versace’s softer side, with models wearing flowers and chiffon dresses in unusual colourings
fashionVersace haute couture review
Arts and Entertainment
DJ Chris Moyles who claimed to be a second-hand car dealer in a bid to save up to £1 million in tax, a tribunal has found
radio
Arts and Entertainment
'The Leaf'
artYes, it's a leaf, but a potentially very expensive one
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Home Care / Support Workers

£7 - £10 per hour: Recruitment Genius: This care provider is looking for Home ...

Recruitment Genius: Web Team Leader

£30000 - £35000 per annum: Recruitment Genius: One of the UK's leading web des...

Recruitment Genius: Client Manager

£27000 - £35000 per annum: Recruitment Genius: A growing, successful, friendly...

Recruitment Genius: Property Negotiator - OTE £20,000+

£16000 - £25000 per annum: Recruitment Genius: This family owned, independent ...

Day In a Page

Greece says 'No': A night of huge celebrations in Athens as voters decisively back Tsipras and his anti-austerity stance in historic referendum

Greece referendum

Greeks say 'No' to austerity and plunge Europe into crisis
Ten years after the 7/7 terror attacks, is Britain an altered state?

7/7 bombings anniversary

Ten years after the terror attacks, is Britain an altered state?
Beautiful evening dresses are some of the loveliest Donatella has created

Versace haute couture review

Beautiful evening dresses are some of the loveliest Donatella has ever created
No hope and no jobs, so Gaza's young risk their lives, climb the fence and run for it

No hope and no jobs in Gaza

So the young risk their lives and run for it
Fashion apps: Retailers roll together shopping and social networking for mobile customers

Fashion apps

Retailers roll together shopping and social networking for mobile customers
The Greek referendum exposes a gaping hole at the heart of the European Union – its distinct lack of any genuine popular legitimacy

Gaping hole at the heart of the European Union

Treatment of Greece has shown up a lack of genuine legitimacy
Number of young homeless in Britain 'more than three times the official figures'

'Everything changed when I went to the hostel'

Number of young homeless people in Britain is 'more than three times the official figures'
Compton Cricket Club

Compton Cricket Club

Portraits of LA cricketers from notorious suburb to be displayed in London
London now the global money-laundering centre for the drug trade, says crime expert

Wlecome to London, drug money-laundering centre for the world

'Mexico is its heart and London is its head'
The Buddhist temple minutes from Centre Court that helps a winner keep on winning

The Buddhist temple minutes from Centre Court

It helps a winner keep on winning
Is this the future of flying: battery-powered planes made of plastic, and without flight decks?

Is this the future of flying?

Battery-powered planes made of plastic, and without flight decks
Isis are barbarians – but the Caliphate is a dream at the heart of all Muslim traditions

Isis are barbarians

but the Caliphate is an ancient Muslim ideal
The Brink's-Mat curse strikes again: three tons of stolen gold that brought only grief

Curse of Brink's Mat strikes again

Death of John 'Goldfinger' Palmer the latest killing related to 1983 heist
Greece debt crisis: 'The ministers talk to us about miracles' – why Greeks are cynical ahead of the bailout referendum

'The ministers talk to us about miracles'

Why Greeks are cynical ahead of the bailout referendum
Call of the wild: How science is learning to decode the way animals communicate

Call of the wild

How science is learning to decode the way animals communicate