Millennials Home Buying Survey

Optimism vs. Market Reality – Which Side Are You On?

Looking for your first home is never an easy task, and buying it can be even harder. In an age of renters, what do first-time buyers really know about buying a property?

A new survey conducted by NatWest looked at non-homeowners yet to take out a mortgage in order to reveal just this. The results? Millennials proved optimistic but lacked market knowledge.

When asked, millennials appeared to be optimistic about acquiring a home. However, many failed to correctly answer questions surrounding deposits, mortgages and Government housing schemes.

Just How Optimistic Are Millennials?

  • A number of factors from the results of the survey suggest that millennials are optimistic about the condition of the housing market.
  • It was compelling to see that 23% of those surveyed did not think Britain was experiencing ‘Generation Rent’ (a term used to describe the housing situation for first-time buyers who can’t get onto the property ladder and are forced to rent instead). This goes against the common belief that all first-time buyers view the current housing market negatively.
  • The majority of those surveyed also believe that they will be able to afford their first deposit in the next five years, again a fact that shows an alternative viewpoint on millennials’ attitudes towards the housing situation as it highlights how many do feel positive about their ability in buying a home.

Market Reality

  • Millennials might be positive, but this doesn’t dismiss the fact that the data in the survey demonstrates striking amounts of misunderstanding. The disappointing truth comes down to first-time buyers not understanding the technicalities in the home buying process.
  • A surprising 41% didn’t know how much deposit was required.
  • 50% found the mortgage process to be difficult.

With results as high as these, it could be assumed that many millennials are ill-informed when it comes to the realities of the housing market. With more exposure to the process of buying a home, millennials will stand a better chance of successfully securing a property in the future. 

The Property Ombudsman