Two thirds of 18 to 34 year olds have given up the dream of owning their own home, as tough mortgage conditions, a shortage of homes and high property prices take their toll on the younger generation.
The majority – 77% – of 20 to 45 year olds want to own their own homes, report Generation Rent claims today. but 64% of them believe that this will never happen.
The study, made by the National Centre for Social Research (NatCen), was commissioned by the Halifax and based on a survey of 8,000 young adults.
It found that 84% of potential first time buyers are put off by the belief that banks won’t lend to them. Over two-thirds believe there’s no point even applying for a mortage.
NatCen researcher Alison Blackwell said: 'The phenomenon of Generation Rent could open up a widening of the wealth gap that already exists between home-owners and non-homeowners. And people risk insufficient finances at retirement.'
But Halifax insists it’s not impossible to get a mortgage and is launching its 'First-time buyer pledge' in July in order to make the whole process clearer and easier.
'It is still possible to get on to the property ladder,' a spokesman said.