A third have given up hope of owning a property

And many have used their deposit to pay bills…

Despite the Help to Buy scheme sky-high deposits are causing a third of wannabe homeowners to give up hope of owning a property and blow their deposit cash on holidays, cars and other luxuries, or simply to cover bills.

A study of 2,000 under 35s found that  some 70% of those saving a deposit have become so disillusioned they have abandoned their attempts.

The study, commissioned by L&Q found that:

  • One in two people under the age of 35 have ‘given up all hope’ of ever owning a property.
  • Three quarters of the 2,000 under 35s describe themselves as ‘nowhere near’ to even getting on the property ladder.
  • Seven in ten think it will be at least five years or more before they can turn dreams of being a homeowner into reality.
  • A fifth of those saving deposits end up abandoning their attempts and spending the lot, while a similar number spent ‘most of it’, and 31% spent at least some of it rather than leave it untouched.

Needing cash to cover the day to day bills was the biggest reason to dip into the deposit, while a third blew it on a holiday after giving up.

Just 30% of those trying to get a deposit together have managed to leave their savings untouched.

Lucy Chitty from L&Q said, ‘It’s important the message gets out there that there are many options for becoming a homeowner and other avenues they can explore.’

L&Q final

 

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