However, the results of a new NatWest survey seem set to question that belief, as it appears Millennials remain optimistic over their chances of getting on the property ladder. In fact, 69% believe that they will have saved up enough money in the next 5 years to afford a deposit and less than half believed that they were experiencing the effect of ‘Generation Rent.’
So what makes Millennials so optimistic? Looking at the results of the survey, it becomes apparent that where Millennials are confident in their ability to obtain a property in the future, they may not necessarily understand what it takes to get them to that point.
In fact, 69% believe that they will have saved up enough money in the next 5 years to afford a deposit and less than half believed that they were experiencing the effect of ‘Generation Rent.’
41% of Millennials stated that they didn’t know how much deposit was needed in order to secure a property. Also, nearly half of those surveyed admitted that they either save none or less that a fifth of their salary each month. Despite this, Millennials’ financial situation came out on top as their biggest concern when it comes to purchasing a property.
Millennials, however, need not quell their optimism just yet. There is plenty of financial advice available from a number of sources to help set them on the right track and when it comes to actually purchasing a property. In fact, there are a number of schemes available to help make that goal more attainable.
Once such scheme is the Government led ‘Help to Buy’ scheme, which makes it possible to secure a property with a deposit of as little as 5%. The survey revealed that while 67% were aware of the scheme, only 22% actually knew how to apply.
It appears that Millennials may have a gap in their knowledge when it comes to buying a property but by seeking out the right advice, researching their options fully and, of course, maintaining their high levels of optimism, there’s no reason why securing a property in the future isn’t a possibility.
Christina Hirst is a content strategist and works on behalf of Natwest in the creation of off-site financial content.