A new survey of homeowners, renters and prospective buyers reveals a big jump in younger age groups saying they are considering applying for social housing in response to housing affordability concerns.
PTSB’s latest Reflecting Ireland research shows that 46% of people who are in the market to buy a home are now considering applying for social housing. This rises to 61% of 18-24 year olds.
21% of people said they are now considering social housing for the first time because the private home ownership market has become so challenging.
The survey, which was conducted on PTSB’s behalf by Core Research, also reveals that first time buyers are struggling to save for a deposit.
Only 41% of FTBs said they have saved enough for a deposit (minimum 10% of purchase price) on their home.
Another 33% said they have some savings in place but not enough for a deposit, while 27% have yet to start saving, PTSB said.
Meanwhile, homebuyers are turning to family for help. Due to the difficulty in saving for a deposit, one in three of those in the market to buy a home say they are relying on their family, through gifts or inheritances, to help put in place the money for a deposit.
Meanwhile, 68% of survey respondents feel house prices will continue to increase. PTSB said the house price trend means more than two in three respondents strongly believe that future generations will find it even harder to own a home.
PTSB’s Reflecting Ireland research survey was released ahead of the PTSB Ideal Home Show in Dublin this weekend.
It also shows that more than six in ten respondents strongly agree that owning a home is very important to them, with long-term renting not seen as a preferable option by most people here, with just 35% of adults saying renting long-term suits people like them.
Despite the challenge in saving for a deposit, 10% of first time buyers say they are planning to spend more than €650,000 on their first home, while 61% say they will spend less than €350,000.
“Our research offers a comprehensive snapshot of people’s attitudes towards homeownership – across existing homeowners, renters and prospective First Time Buyers and Second Time Buyers,” Leontia Fannin, Chief Sustainability & Corporate Affairs Officer at PTSB, said.
“We are seeing a shift in attitudes towards housing and homeownership, as well as evidence of the struggles first time buyers are facing, such as saving for a deposit,” Ms Fannin said.
“The research also shows that there is a lot of scope for existing homeowners to access better mortgage interest rates through a range of options, including making their homes more energy efficient, becoming more aware of the ability to use a lower LTV to get a better rate, and switching to lenders who offer better deals,” she added.
Article Source – First time buyers struggling to save a deposit – PTSB research – RTE
