The reality of generation rent

Perceptions of the first time buyer market

Aim

This report presents key findings from Halifax’s fourth annual research into perceptions of the first-time buyers' market.

The first report in 2011 led to the identification of ‘Generation Rent’ – a generation with no realistic prospect of owning their own home in the next five years.

Findings

• There's been a drop in the number of people who are concerned about up-front barriers such as deposit sizes and difficulty getting a mortgage.
• Concern about longer-term affordability as a result of rising house prices and low income is increasing.
• This generation's non-homeowners are doing more than their parents’ generation did to save for a deposit. 69% of 20-45-year-old non-homeowners are cutting back on their spending to save for a deposit.
• Homeownership is still the preference for most people but those aged in their mid twenties are significantly less likely to want to own a home than older generations.

Methodology

Interviews were conducted by Populus, and we analysed the data. Populus spoke to just over 8000 20-45 year olds and around 1000 parents of 20-45-year-olds.

Read the 2014 report

Read the 2011 report