A new survey by self-storage company, Space Station, has found that millennials are 1.5 times more likely to make their first home their forever home, compared to their parents’ generation.
According to the analysis of 1,000 Brits who are currently preparing to buy a house and 1,000 Brits who bought their home from 1988-98, who reflected on their experiences, 39% of millennials said that they plan on staying put, compared to only 26% of those who bought their house 20-30 years ago.
House prices have increased far above the rate of inflation over the last 30 years, with the average house price in 1988 coming in at £45,000- the equivalent of £117k in today’s money.
As a result, first time buyers today are six times more likely to struggle to save for their deposit than those buying 20-30 years ago. While one in three people (33%) currently saving for a home said they had been forced to delay by the challenge of saving a deposit, only one in 20 people (5%) who bought their first home between 1988 and 1998 reported the same struggle.
It isn’t just financial pressure to buy their first homes that is making millennials consider making their first home their forever property, but also the second round of financial problems that comes with finding a second home.
A report issued earlier this year showed that ‘second steppers’ are struggling to buy their second home without financial support from their parents and that they would need an average of £25,450 worth of support to move up the property ladder once again.
These difficulties in obtaining a property have led to 43% of homeowners now considering staying put and improving their homes rather than moving.
Jessica McDonnell, 27, from Leeds recently bought a house with her husband after five years of renting together.
She said: “I think the younger generation definitely have it harder when it comes to saving for a house and we are having to do so much more just to get on the housing ladder.
It doesn’t surprise me that the younger generation are now dimissing starter homes in favour of longer term investments. I bought my current house knowing that I have plenty of land to be able to extend my property and grow into it. Although it would be lovely one day to get another property, we know that it may not be financially viable.”
Vlatka Lake, Marketing Manager at Space Station, said: “We help a lot of Brits with their house move when they require storage, so we know all too well about the struggles and sacrifices people have to make in order to buy their first and second home.
As the prices of houses shoot up, it’s not surprising to see so many people deciding to look at extending their current space at home, rather than move house entirely. It just shows how attitudes to buying a house have really changed over the years and how hard it is for younger people today”.