A new report from TopCashback.co.uk, the UK’s most generous cashback shopping site, investigates millennials' expectations of owning a house and found that despite all (100 per cent) millennials in the west midlands wanting to buy a house in the future, over a quarter (26 per cent) do not think it will happen and 32 per cent are only hopeful about their chances. Just over two-fifths (42 per cent) are sure they will buy a property.
The uncertainty as to whether they will be able to invest in bricks and mortar means millennials in the west midlands are focusing on financial security as a savings goals instead. Around two-fifths (38 per cent) of millennials say a deposit for a house is their main savings goal, but is trumped by a savings cushion (42 per cent) an emergency fund (42 per cent) and achieving financial freedom (38 per cent).
Similarly, millennials’ main goals in life are to be healthy (47 per cent), be financially stable (35 per cent) and have financial freedom (34 per cent). Buying a house comes seventh on the list at just 23 per cent
Even of the millennials in the west midlands who are optimistic about getting on the property ladder, a quarter (25 per cent) don’t think it will happen in the next five years. The cost of housing rising quicker than salaries (58 per cent), not earning enough money for a deposit (55 per cent) and not being able to afford a house on their own (40 per cent) is giving millennials doubt about getting on the property ladder sooner rather than later.
Millennials in the west midlands want to rent a place with their partner
Of the 26 per cent of millennials who are unsure they will own a property, over a third (36 per cent) see privately renting with a partner as a long-term preference and 29 per cent plan to live with their parents.
With the chances of owning a house off the cards, millennials in the west midlands have alternative goals for the next five years. Nearly two-fifths (38 per cent) would like to rent somewhere with a partner, 36 per cent would like to rent modern property and three in 10 (30 per cent) would like somewhere with a parking space.
Interestingly, in the next five years, 13 per cent of millennials see renting somewhere that is large enough to host dinner parties as a goal.
Natasha Rachel Smith, consumer-money expert for TopCashback.co.uk, said: “Our research shows millennials are being sensible with their money and thinking about financial security. However, the current economic climate, and a change in lifestyle – people marrying and having children later – means millennials are favouring experiences over possessions and have different financial priorities at this point in their lives.
“While it may be later in life and less of a priority than it was in the past, it is important for millennials to put money aside regularly and be savvy with their spending, so they are prepared when the opportunity to buy a property does arise.”
