UK Millennials Looking to Purchase Property Face Uphill Battle

UK Millennials Looking to Purchase Property Face Uphill Battle

The challenge of purchasing a property for first time buyers is leading to tough times for many UK millennials looking to grab a spot on the housing ladder. The numbers paint quite the clear picture for those looking to buy their first residence. UK average house prices are increasing at 7.5% and income is growing at under 2%. All this adds up to relying on the bank of Mum and Dad and other family members for a deposit, or just saving and waiting.

Millennials in the UK are waiting and wondering when they will get that golden opportunity to own their own property. As a demographic, this group has been waiting for some time with many factors mounting against them. Now, it seems they are looking straight up at a looming mountain. Rising house prices and stagnant wages are making it harder than ever to compile enough for a down payment on a property.

A recent study by the HSBC clearly illustrates the point. In a global sense, more than two-thirds of Chinese millennials have purchased a property in which to live, whilst only 31% of UK millennials have bought a home.

China statistics tell a different story for those of age looking to buy a home. House prices have risen 3.6% as income is set to rise 4% this year, according to the HSBC report.

Louisa Cheang of HSBC commented on the latest data for those looking to buy a house, saying: “The greatest challenges are in those countries where there is a perfect storm of stagnating salaries and rising house prices – for millennials in those countries, the dream, while not dead, looks set to be deferred.”

Obligation Free Remortgage Quotations

Get a Quote »