Millions of younger adults worried about the cost-of-living crisis impeding their homeownership plan

Research also reveals they are making significant changes to their lifestyles to save money

By Rommel Lontayao

15 Dec 2022

A majority, or 51%, of the younger generation of UK adults – the equivalent of 7.5 million people aged 18 to 34 – are worried about the cost-of-living crisis limiting their capacity to save for a deposit on their first home, research from Bluestone Mortgages has revealed.

The mortgage lender also said that almost three in five, or 59%, of 18 to 34-year-olds are worried about their future ability to get on to the property ladder as, on average, this group expects to be £146 worse off each month due to the rising costs of living.

These concerns, Bluestone Mortgages noted, have prompted these younger UK adults to look into making significant changes to their lifestyles to try and mitigate the additional expenses they will soon face.

According to the results of the survey of 2,000 adults, many are committing to reducing energy consumption (52%) and eating out less often (48%), as well as cancelling subscription services (39%) and holidays (31%). A quarter are even looking into moving back in with family (25%) to better cope with financial pressures.

“The cost-of-living crisis is adding to the stress young people face getting on to the property ladder,” Steve Seal (pictured), chief executive at Bluestone Mortgages, commented. “Combined with the Help to Buy scheme having recently closed to new applicants and lenders withdrawing from the market due to extreme market volatility, prospective first-time buyers are clearly worried about their ability to make their homeownership dreams a reality.

Seal added that as the government does not have any plans to replace the scheme, those in the property industry must collaborate and make a determined effort to reassure first-time buyers that there are other options available to buy their first home, including Deposit Unlock and Shared Ownership.

“Looking ahead, it’s vital that lenders and builders work together to assist borrowers in achieving their homeownership ambitions in a post Help-to-Buy environment,” he said.