How important is it to own your own home?

A deposit for a house comes fifth on millennials’ list of savings goals
 

Millennials are saving for financial freedom over a house deposit

Having money to travel is more important than buying a house

A new report from TopCashback.co.uk, the UK’s most generous cashback shopping site, investigates millennials’ expectations of owning a house and found although the majority (95 per cent) would like to buy a house in the future, nearly a third (31 per cent) do not think it will happen and 29 per cent are only hopeful about their chances. Just 39 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 are focusing on financial security and life experiences as savings goals instead. Just over a third (35 per cent) of millennials say a deposit for a house is their main savings goal, but is trumped by building an emergency fund (51 per cent), a savings cushion (43 per cent), achieving financial freedom (40 per cent) and having money to travel and go on holiday regularly (37 per cent).
 

Similarly, millennials’ main goals in life are to be healthy (49 per cent), have financial freedom (36 per cent) and be financially stable (30 per cent). Buying a house comes eighth on the list at just 19 per cent.

Even of the millennials who are optimistic about getting on the property ladder, just under half (47 per cent) think it will happen in the next five years. The cost of housing rising quicker than salaries (64 per cent), not earning enough money for a deposit (56 per cent) and living costs being too high to save (37 per cent) are giving millennials doubt about getting on the property ladder sooner rather than later.

Millennials want to rent a place with outdoor space

Of the 31 per cent of millennials who are unsure they will own a property, more than half (56 per cent) see privately renting with a partner as a long-term preference and more than a quarter (26 per cent) plan to rent a place on their own.

With the chances of owning a house off the cards, millennials have alternative goals for the next five years. More than a third (35 per cent) would like to rent somewhere with outdoor space or a garden, three in 10 (29 per cent) would like to rent a property with a car parking space and just over a quarter (26 per cent) would like somewhere they could decorate to their own taste.

Interestingly, in the next five years, 13 per cent of millennials see renting somewhere that it 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.”
 

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Notes to Editors

• The results are based on a survey answered by 1,460 millennials (those born between 1977 and 1995) in the UK conducted between 14/03/2018 and 26/03/2018

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About TopCashback.co.uk

Established over 13 years ago, and with more than seven million members, TopCashback is the UK’s most generous cashback shopping site. It is simple; TopCashback offers people savings and money back on everything they buy when clicking through the site to the 4,650 retailers available. Rates vary from merchant to merchant, but on average members earn 7.5% of their money back on purchases. Over a year, members can earn £325 by doing their shopping, utility switching and renewing insurance policies through the site.