Generation next of Britain is close to giving up hope of owning their own home. A new survey revealed that “Generation Next” is now becoming “Generation Rent” and they think that they will never be able to own their home for living.

Property prices are skyrocketing and they were increased up to 40% for the last few years. A decision taken 30 years ago by Margaret Thatcher is making Britain more like Europe where living in a rented home is a norm.

The data of finding by Halifax which also coincide with a separate report from housing charity shelter which reveals that the number of mortgages offered in April slumped to the lowest level since records began. Just 29,355 mortgages were granted, 18 per cent fewer than during the same month last year.

Polling company Populus conducted an online survey to know what Britain residents are thinking about renting or owning home. 8000 Britain residents in the age group of 20 to 45 participated in the survey.
What the survey said:

• More than three-quarters who do not own property would like to own one
• 64 % believe that their prospects of ever buying their own home are nil
• 84% of first-time buyers were put off by a belief that the banks do not want to lend to them
• 67% thought there was little point in applying for a bank loan at all because of the probability that they would be turned down

A report published by the Institute for Public Policy Research (IPPR) says that one of the reasons house prices are so high is that it is too easy for buyers to raise mortgages they can barely afford. IPPR suggests that the Government should introduce rules to restrict the size of a mortgage to 90% of the price of a property, and three-and-a-half times the household’s annual income. They believe that this would prevent another housing bubble.

The craziest thing about all these facts and statistics is that homebuyers will have to save thousands of pounds for a deposit for their own home and whether they want to or not we all know that for this generation and this market it is almost impossible to save in general, especially if it is 10% of a purchase price of a house.

This is becoming a epidemic as many current housing markets including the United States of America and Australia are also following this trend where vendors are failing at selling their properties as buyers cannot get bank loans and buyers are trying to buy properties but are unable to save and receive required lending.

With today’s new problems we have to diminish the old solutions and replace them with new solutions. People need alternative lease options that would work given the current financial situation. Property investment strategies that I teach will not only stop our next generation becoming ‘Generation Rent’ but allow them to achieve the dream of home ownership.

Tagged as: Rent A Property