A new report from TopCashback.co.uk, the UK’s most generous cashback shopping site, investigates millennials’ expectations of owning a house and found although the majority (89%) would like to buy a house in the future, nearly two-fifths (38%) do not think it will happen and a quarter are only hopeful about their chances – and just 38% are sure they will buy a property.
The uncertainty as to whether they will be able to invest in bricks and mortar means millennials in the North-East are focusing on financial security and life experiences as savings goals instead.
Nearly two-fifths (37%) of millennials say a deposit for a house is their main savings goal, but is trumped by building an emergency fund (44%) and having money to travel and go on holiday regularly (40%).
|Millennials’ savings goals in the North-East|
|1. An emergency fund (44%)|
|2. Money to travel / go on holiday regularly (40%)|
|3. A deposit to buy a house (37%)|
|3. A saving’s cushion (37%)|
|5. Financial freedom (35%)|
|6. A holiday (28%)|
|7. Buy a bigger house (16%)|
|8. Retirement (14%)|
|8. To go travelling for a prolonged period (14%)|
|10. A wedding (12%)|
Similarly, millennials’ main goals in life are to have financial freedom (35%), provide for their family (33%) and be healthy (30%). Buying a house comes eighth on the list at just 20%.
Even of the millennials in the North-East who are optimistic about getting on the property ladder, only 58% think it will happen in the next five years.
The cost of housing rising quicker than salaries (70%), not earning enough money for a deposit (70%) and living costs being too high to save (50%) are giving millennials doubt about getting on the property ladder sooner rather than later.
Of the 38% of millennials who are unsure they will own a property, 44% see privately renting with a partner as a long-term preference and the same number plan to rent a place on their own.
With the chances of owning a house off the cards, millennials in the North-East have alternative goals for the next five years.
Nearly two-fifths (37%) would like to rent somewhere with a partner, the same number would like to rent a property with a large kitchen and a third would like to rent somewhere they can decorate to their own taste.
Interestingly, in the next five years, 15% of millennials see renting somewhere that is large enough to host dinner parties as a goal.
Natasha Rachel Smith, consumer-money expert for TopCashback.co.uk, said: “Our research shows millennials are being sensible with their money and thinking about financial security.
“However, the current economic climate, and a change in lifestyle – people marrying and having children later – means millennials are favouring experiences over possessions and have different financial priorities at this point in their lives.
“While it may be later in life and less of a priority than it was in the past, it is important for millennials to put money aside regularly and be savvy with their spending, so they are prepared when the opportunity to buy a property does arise.”