HomeLatest NewsMillennials save for a Holiday instead of a House
Millennials save for a Holiday instead of a House
Posted on 01/11/2018 by Sulgrave Estates
Research by MoneySuperMarket reveals that 42% of 18-25 years prioritise saving for a holiday over a property. The overall number of people getting on the property ladder has dropped by a staggering 45% since 1994.
When looking at the changing face of home ownership, the data reveals that a large portion of Brits are putting their dreams of buying a home on hold and instead using their savings for short term commitments. While 34% are saving for holidays and traveling, only a fifth (19%) are currently putting their savings towards home ownership.
This could be because getting on the property ladder has become more difficult over the last twenty years, with the average annual salary now accounting for only 11% of the average house price in 2018, compared to 23% in 1999. 16-24 year olds have been particularly affected, with a dramatic 68% decrease in first-time buyers in this category between 1981 and 2016.
Those in the 25-34 age bracket are paying an average of 39% more on rent than the over 55s did before purchasing their first home.
The data also reveals that there has been a 54% increase in the number of 34-50 year olds renting from 1996 to 2016, with 60% of 35-44 year olds citing a preference for renting over home ownership. A further 41% stated that they weren’t earning enough to even consider saving for a home.