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.’