Inheritance is key for some first time buyers, new data shows

A full 100 per cent of 20 to 24 year olds hope to buy their own home one day -  but this slumps to just 59 per cent for 25 to 34 year olds.

A report by law firm Collyer Bristow - called Home Ownership Attitudes and Aspirations – is based on the views of a panel of 20 to 44 year old men and women in London and the South East living in rented accommodation and in their own homes. 

It reports that 73 per cent of men and 57 per cent of women hope to buy their own home within the next five years. Some 29 per cent report that home ownership in the same timeframe is unrealistic, with just nine per cent saying they have no aspiration to buy a home at all.

“We have seen developers bring forward new tenures, such as dedicated Build To Rent schemes, but home ownership remains the ultimate goal” says Alex O’Connor, a partner at Collyer Bristow. 

The survey asked both homeowners and those wanting to buy a home how they funded or intend to fund the deposit on their home.

Personal and joint savings lead the way for those that have purchased (63 per cent) or intend to purchase (62 per cent) while the ‘Bank of Mum and Dad’ does play a role with 32 per cent receiving help from their parents to fund their purchase. 

Help to Buy remains important with 23 per cent saying they were able to get onto the property ladder only with this help from the government.

“Given that for many home buyers personal savings play a big role, it is perhaps not surprising that price (77 per cent) trumps location (61 per cent) when buying. One statistic that did surprise us was the high number of purchases reliant on inheritance: 31 per cent of homeowners had inherited property or cash and a further 21 per cent expect to inherit property or cash to fund a property purchase” says O’Connor.

Alternative property tenures are growing in popularity, particularly in Greater London, but remain minor in the wider landscape. 

Whilst just one per cent of the Collyer Bristow panel currently live in a co-living scheme but 74 per cent would consider them at some point in the future, attracted by a fixed monthly fee for a room in a central location.