Skyline Magazine Winter 2021 | Page 14

14 Skyline | Edition 3 | Winter 2021
The economic landscape of the world is changing . While those in their thirties enjoy many advancements today ’ s later life generation could have only dreamed of , a guaranteed opportunity of homeownership is not one of them .
According to recent research by the Equity Release Council ( ERC ), the number of firsttime buyers is less than half that of the mid-1980s , with 2020 seeing some of the lowest levels of activity since the financial crash in 2008 .
Actual and expected number of first-time buyers
Expected first time buyers Actual first time buyers
The COVID-19 pandemic undoubtedly played a role in the reduction of FTB demand , with almost a quarter of workers aged 35 to 44 furloughed , according to ONS statistics . However , a consistent imbalance of expected first-time buyers and actual first-time buyers has been evident since 2003 , with those purchasing their first property failing to reach expected levels for almost two decades .
The disparity in property ownership opportunity for those in their thirties versus the previous generation is down to several factors ; however , the simple financial barrier of a significant deposit – due to the exponential rise in house prices – is a leading cause .
Data released from the ERC showed that nearly half of homeowners in their thirties found high deposit requirements delayed their first house purchase , while over a third were delayed by mortgage affordability requirements . In comparison , the same factors delayed homeowners now in their sixties by just 15 % and 10 % respectively from getting onto the property ladder .
The same can be said for higher education costs , with nearly one in four 30 to 39-year-olds seeing their student debt as a major blocker to getting onto or moving up the property ladder .
According to the ERC , many of the 2.7 million households who have not bought a home – but would have been expected to , based on previous first-time buyer behaviours – will be in their thirties . And nearly half who do not already own their own home think it ’ s unrealistic they ever will .
As it has done for many years , inheriting property or money will help some of those struggling to find their way onto the homeownership ladder , with 41 % of those in their thirties having received or are expecting to receive an inheritance in the form of property or money from the sale of property .
However , for those still waiting , many do not believe their inheritance will come until they ’ re in their mid-40s to 60s – significantly later than the average first-time buyer age .
Why make such a fuss about ownership ?
Homeownership could be seen by some as an unnecessary luxury . As long as you have a roof over your head , warmth and security , what does it matter whose name is on the deeds ?
But owning your own home brings with it many benefits renting can ’ t provide .