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Upwardly Mobile And Willing To Sacrifice - The Young Home Buyers Of Today

Press release   •   Feb 04, 2014 13:57 GMT

- Return to optimism for first-time buyers; 36 per cent are looking to buy
- Over half are willing to give up their weekend social life to save for a deposit

Over a third of non-homeowners aged 18-34 (36 per cent) 1 are hoping to get on the property ladder in the immediate future and are making big sacrifices to do so, according to the third annual Post Office House Buying Habits report.

The number of young people looking to buy a first home has remained similar year-on-year (36 per cent vs. 34 per cent in 2012). However, the number who have no intention of buying has doubled over the same period (from 5 per cent to 10 per cent), suggesting a widening gap between these two groups.

However, it is not all doom and gloom with many would-be buyers adjusting their expectations over recent years and making compromises or sacrifices in order to take that all-important step onto the first rung of the housing ladder.

This year’s research figures reveal the number of young buyers prepared to make certain compromises has actually fallen over the past year, suggesting a renewed sense of consumer confidence amongst this segment of the market.

Top five compromises potential homeowners aged 18 – 34 are willing to make:

2012

2013

Not having a property that is fully ‘ready to move into’

40%

44%

Not buying new furniture and appliances

40%

33%

Not living in a trendy area

38%

35%

Not having original features in the property

37%

37%

Not living close to family

29%

26%

Would-be buyers are still open to the idea of a ‘starter home’ which requires further work (44 per cent) before they are fully satisfied with it. However, location remains a priority; the number who would sacrifice living in a trendy area has fallen from 38 per cent to 35 per cent, while the number who would consider moving away from family has fallen from 29 per cent to 26 per cent.

These compromises vary across the country. Londoners, with their tribal loyalty to north or south of the river, live up to their reputation with only a quarter (25 per cent) of those living in the city willing to reconsider living in a trendy location (compared with 35 per cent nationally).

John Willcock, Head of Mortgages at Post Office, said: “For many people owning their own home is a dream they are determined to make a reality, and our report highlights the lengths some will go to. Since the recession in 2008, people have taken extra steps to save money for a deposit. However, the launch of the Government’s Help to Buy scheme and a raft of affordable loans on the market look to have rallied optimism amongst first-time buyers.”

The survey reveals that young men and women have different motivations for getting on the housing ladder. Of those young women looking to buy, 30 per are driven by the desire to settle down and 30 per cent are tired of renting – while young men consider buying property a good financial investment (29 per cent).

In addition to the compromises some buyers are willing to make, many are also prepared to streamline their lifestyle to save for a deposit. However, the number who would consider this has gradually fallen year-on-year.

Food and fun are the first things to go, including takeaways (57 per cent) and going out at the weekend (51 per cent). Furthermore, 43 per cent say they would consider cutting back on their weekly food shopping. When pushed to it, more than one in ten (14 per cent) would forego saving into a pension in order to put a little more aside for a deposit.

Top 10 sacrifices young home-owners would consider making:

2012

2013

Takeaways

59%

57%

Not going out at the weekend

51%

51%

Not going to restaurants or bars

54%

50%

Making own lunch for work

56%

50%

Not buying new clothes/shoes

51%

47%

Cutting back on weekly shop

47%

43%

Not going on holiday

42%

43%

Giving up morning coffee

44%

42%

Buying second hand furniture

36%

41%

Giving up the gym

43%

32%

John Willcock continued: “While older generations are likely to have purchased a home at a young age, today’s 18-34 year olds find themselves in a very different position; counting every penny in order to acquire those essential property pounds.

“At the Post Office we want to do all we can to help young people who are saving to own their own home. Our broad range of products, some of which only require a 10 per cent deposit, are designed to suit every possible situation and ease the difficult financial burden that can come with purchasing a new home.”

Customers can pick up information about Post Office’s mortgage range and rates online at http://www.postoffice.co.uk/mortgages or from one of over 11,500 Post Office branches across the UK. Customers can also arrange a call-back from a mortgage specialist at the call centre, via all branches, or call the Post Office directly on 0800 077 8033.

Ends

For more information, please contact:

Carmel McCarthy

Post Office Press Office

Tel: 020 7250 2268

Mob: 07717 294529

Email: carmel.mccarthy@postoffice.co.uk

Twitter: @postofficenews


1 Research conducted by Opinium on behalf of the Post Office. 2,002 online interviews were conducted between 30th August to 2nd September 2013/ 13th September to 16th September. Young women and men refers to those aged 18 – 34. And 2,012 online interview between 23rd to 25th May 2012.

Top 10 sacrifices that house hunters aged 18-34 are willing to make to their lifestyle

Total

Men

Women

Takeaways

(57 per cent)

Takeaways

(46 per cent)

Takeaways

(67 per cent)

Going out at the weekend

(51 per cent)

Going out at the weekend

(45 per cent)

Going out at the weekend

(55 per cent)

Going to restaurants or bars

(50 per cent)

Holidays

(41 per cent)

Holidays

(45 per cent)

Buying lunch at work

(50 per cent)

Buying lunch at work

(40 per cent)

Buying lunch at work

(59 per cent)

Buying new clothes or shoes

(47 per cent)

Going out to restaurants or bars

(38 per cent)

Going out to restaurants or bars

(59 per cent)

Holidays

(43 per cent)

Buying new clothes or shoes

(36 per cent)

Buying new clothes or shoes

(57 per cent)

Weekly shop

(43 per cent)

Morning coffee

(36 per cent)

Morning coffee

(47 per cent)

Morning coffee

(42 per cent)

Buying new furniture or appliances

(35 per cent)

Buying new furniture or appliances

(45 per cent)

Buying new furniture or appliances

(41 per cent)

Weekly shopping

(32 per cent)

Weekly shopping

(52 per cent)

Gym or sports club membership

(32 per cent)

Subscription TV services

(31 per cent)

Gym or sports club membership

(38 per cent)

In August 2012 Post Office introduced Mortgage Specialists into a number of its larger branches in the UK. The Mortgage Specialists are able to discuss each individual’s needs and answer questions to help customers make an informed decision about the suitability of the products. In addition, the majority of customers will be able to get a decision in principle within minutes. First time buyers, those wishing to move, or customers looking to switch to a better deal will be able to book a free, no-obligation appointment in selected branches.

Post Office Limited has an unrivalled national network of over 11,500 branches across the UK, more than all the high street banks combined, and sits at the heart of many communities across the country. The Post Office has made a commitment to no more branch closure programmes. It provides around 170 different services and products spanning financial services including savings, insurance, loans, mortgages and credit cards. Post Office also offers Government services; telephony; foreign currency; travel insurance and mail services.

It serves around 18 million customers a week and half of all small businesses. 93% of the total population live within one mile of a post office and 99.7% within three miles. For many rural communities the post office is the only retail outlet. Post offices remain highly valued and trusted and are the focal point for many communities. For more information, visit www.postoffice.co.uk

About the Post Office

The Post Office (Post Office Limited) has an unrivalled national network of over 11,500 branches across the UK, more than all the high street banks combined, and sits at the heart of communities in Northern Ireland, Scotland, Wales and England. The Post Office has made a commitment to maintaining its network of branches at its current size and reach. It provides around 170 different products and services spanning financial services including savings, insurance, loans, mortgages and credit cards; Government services; telephony; foreign currency; travel insurance and mail services.

The Post Office serves over 17 million customers a week and a third of small businesses. Some 99.7% of the total population live within three miles of a post office and over 97% live with one mile of a post office. For many rural communities, the post office is the only retail outlet. Post Offices branches remain highly valued and trusted, and are the focal point of many communities. For more information, visit http://www.postoffice.co.uk/.

Please note the Press Office team can only deal with enquiries from the media.  Unfortunately they do not have access to customer information so can not help with customer enquiries.

If you have an enquiry regarding any Post Office product or service please visit postoffice.co.uk or call 0845Local call rates apply. Call costs may vary depending on your service provider. Calls may be monitored or recorded for training and compliance purposes. 611 2970.