Ways To Get On The Property Ladder For Young People
It’s no secret that getting on the property ladder is becoming more and more inaccessible for young first time buyers in the UK – with figures showing that deposits have more than doubled since 2006. The rental industry is also partially to blame for the difficulty of becoming a first time buyer, as many youngsters are being stuck in the ‘rental trap’, with their income being taken up so much by rental fees that there are little to no opportunities to save.
It’s a difficult prospect at best for many to get the funds together for a deposit on a home, and graduates also finding the job market very unforgiving in terms of finding work which allows them the luxury of being able to get together a deposit – and that’s without taking student loans into account. Some youngsters are working multiple jobs around the clock, just to get a chance at owning a home, and even they still need help from family to get where they need.
However, the amount of new homes being built in the UK is on the rise, so why the paradoxical lack of opportunity for youngsters? Many believe that the current high price of homes is driving people into renting more than ever before.
So what can you do if you want to become a first time buyer, or are many just going to have to rent until (hopefully) house prices drop?
Government assistance schemes are being slashed due to a lack of funding, with the Help To Buy Scheme ending in late 2016, but there is still a way to get the government to assist – The Starter Home scheme allows buyers under 40 to get a 20% discount on new homes, with around 200,000 homes being part of the plan – check new-homes.co.uk for some of the homes available under this scheme. The discounted price for these homes should be priced no more than £250,000 outside London, and £450,000 in London.
Other assistance schemes from the government include a Shared Ownership scheme and the Right To Buy scheme, but these schemes are for tenants already renting their home off local councils, and getting hold of one of those homes means being on a housing waiting list for quite a while.
Banks are also offering schemes for first time buyers to allow parents to guarantee a mortgage deposit so the buyer doesn’t need to put down one – uSwitch offers a guide to these guarantor mortgages here.
Other than those, many young people are having to go to parents for assistance outside of schemes, which is fine if your family is well off but obviously this is not the case for everyone.
You can find a longer and more detailed list of ways you might find help buying a first home at The Money Advice Service
For young people, the situation is looking bleak – everyone’s purchasing power is being greatly diminished due to the falling pound and other huge decisions made by people at the top of society who are already very well off indeed.
But we hope we have at least made readers aware there are some schemes that can help in the midst of what is arguably a crisis – with homelessness, high rental costs and repossession of homes all on the rise. It really is tough out there for today’s youth at the moment, and sadly it’s not likely things will turn around any time soon.
To find out more about the UK’s housing crisis, or if you want to join the campaign for affordable housing, or if you just need assistance and advice, visit Shelter, one of the top housing and homelessness charities around.