According to a new poll many young people, as many as 40%, are putting their future life plans on hold until house prices come down to affordable levels.
A YouGov survey, commissioned by the National Housing Federation (NFA), indicates that home ownership dreams have been shattered for many potential first time buyers.
The poll found that, despite recent house price falls, a staggering 86% of 18-30 year olds that do not already own a home could not afford a house if they wanted one. 83% of them thought that home-ownership was for them now just a dream.
54% of them said they would need financial help from parents or relatives to buy their own home.
Of those who said they would need help, 9% would require £40,000 or more, 8% up to £40,000, 28% would need up to £20,000 and 18% would need up to £10,000.
Until they could afford to buy, which in some cases respondents thought they would have to wait for ten or even twenty years, 70% said they would rent privately and 11% would remain with their parents.
The NFA said that the problems stem from the lack of affordable housing and the fact that house building has dropped to the lowest level since 1923. This has led to a record 4.5 million people now on housing waiting lists in England alone.
David Orr, the Federation Chief Executive, said: “Young people are giving up hope of ever being able to afford their own home and who can blame them?
“The simple truth is we, as a country, have failed to build anywhere like enough homes to meet demand, which has sent house prices rocketing over the last decade and well out of reach of most young people.
“Banks are meanwhile demanding tens of thousands of pounds in deposits before even considering lending first time buyers a mortgage. For those without parents with the funds to help them – there’s virtually no chance of getting a rung on the property ladder.
“The three main parties must commit to building significant numbers of affordable homes for rent and sale to avoid locking an entire generation out of having their own home.
“The next government must view housing in the same terms as health, education and policing – and protect it from budget cuts, given the scale of the crisis.”
What we may be looking at is a whole generation of people who eventually will never own their own homes. This will of course require many more private landlords and residential letting property developers and investors if the government cannot step in and provide social housing.