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Buying a home: What lengths will people go to?

Date online: 08/10/2014

The study reveals that 1.1 million (seven per cent) would consider emigrating if it meant they could afford their own home. A further one in 10 (nine per cent) would be willing to move jobs or relocate somewhere else in the UK to get a foot on the ladder, rising to 23 per cent of 18-24 year olds.

The research reveals that 7.5 million (49 per cent) of non-homeowners don’t ever expect to own a home. However, the dream is alive for many, who are willing to draw on a range of measures to save for a deposit. Of those surveyed the majority were willing to reduce their standard of living (20 per cent) or sacrifice luxury purchases, for example, a car or a holiday (20 per cent).

Younger generations are the most likely to rely on family in their quest for homeownership, with more than a quarter (28 per cent) of 18 to 24 year olds who do not own a home living with their parents or partner’s parents while they save money for a deposit. An additional six per cent of this age group would be willing to move back in with parents despite having already flown the nest.

Almost a third (30 per cent) of 18 to 24 year olds who are non-homeowners would use their inheritance to build deposit funds and one in 10 (11 per cent) will use their parents as guarantors to secure a mortgage. The same number would be willing to withdraw money from pension savings, compared to only six per cent of 45 to 54 year olds.

1: Sacrifice non-essential / luxury purchases e.g. holiday, new car

All non-homeowners 20%

18-24 year old non-homeowners 41%

2: Reduce standard of living e.g. buy cheaper food, visiting friends less
All non-homeowners 20%

18-24 year old non-homeowners 37%

3: Use an inheritance to pay for a deposit 

All non-homeowners 18%

18-24 year old non-homeowners 30%

4: Relocate / change jobs and live somewhere else

All non-homeowners 9%

18-24 year old non-homeowners 23%

5: Move out of the UK

All non-homeowners 7%

18-24 year old non-homeowners 11%

6: Withdraw money from my pension savings

All non-homeowners 5%

18-24 year old non-homeowners 11%

7: Take on additional debt 

All non-homeowners 4%

18-24 year old non-homeowners 8%

8: Move back to my, or my partner’s parents’ place

All non-homeowners 4%

18-24 year old non-homeowners 6%

Miguel Sard, Head of Santander Mortgages, said: “With living costs rising ahead of salaries for many people, raising a deposit remains one of the biggest concerns for first time buyers, especially for younger generations. However, there are a variety of options available to suit most budgets, so it is crucial that prospective buyers shop around for the best deals and get sound advice in terms of properties and mortgages.

Santander can help with upfront costs and our range of Help to Buy mortgages offer competitive fixed and tracker rates to buyers with a 5% deposit. Our 1|2|3 Current Account also gives 1% cash back on Santander mortgage payments, rewarding our customers and helping them make the most of every penny they spend.”

The Help to Buy: mortgage guarantee range offers competitive fixed and tracker rates starting from 4.99%, with a minimum deposit of 5% of the purchase price and no booking fees on properties up to the value of £600,000.  All products come with the Homebuyer Solution as standard, which includes a free valuation plus £250 cashback, helping customers with the upfront costs of purchasing a property.

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