Housing market stalemate as young people can't buy

Two surveys highlight the reasons why young people are struggling to get onto the property ladder.

Two new surveys underline the problems young people are facing getting on the property ladder.

HSBC’s Moving Home Survey found that only 12% of the 2,000 people it surveyed were thinking of moving home this year.

And 10% of the people under 34 who were interviewed said they didn’t want to own a home. Of the others, 29% said they couldn’t raise a deposit, 15% said they were concerned they wouldn’t be able to get a mortgage and 14% were worried about their employment prospects.

The HSBC survey found that people in London were most likely to buy or sell in the next six months.

That finding is echoed by a Santander survey that found that people in London were most positive about being able to buy a property this year. People in the east of England and Northern Ireland were least confident they would be able to buy.

But this survey also highlighted young people’s worry that they wouldn’t be able to raise a deposit, with 42% of 18- to 34-year-olds saying this is the main reason they won’t be buying.

The Santander survey’s respondents were pretty mixed about prospects for the housing market this year. Nearly half (48%) thought their home’s value would stay the same, with 29% thinking it would rise in value, 17% predicting a fall and 6% saying they didn’t know.

Unsurprisingly, given prices in London have held up well despite the overall UK market stagnating, Londoners were most confident their home would increase in value. People in the north west of England were least confident of any rise in their property price.

At lovemoney.com, you can research all the best deals yourself using our online mortgage service, or speak directly to a whole-of-market, fee-free lovemoney.com broker. Call 0800 804 8045 or email mortgages@lovemoney.com for more help.

More: Where to find a mortgage with a small deposit | How to stand the best chance of getting a mortgage

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