House prices: Halifax discovers majority of renters given up saving to buy home

Well over half of young people living in rented accommodation have opted not to bother saving to get on the property ladder, according to Halifax

Halifax found that some 56% of 20-45 year old Britons canvassed had no plans to become home owners any time soon, which is a drop of 6% on last year in the number of people who are trying to save to buy a place.

Just 43% of renters in the UK are currently saving for a deposit, while in London a staggering 82% of people believe ever owning a house is beyond them.

Halifax questioned some 8000 potential house buyers many of who blamed the bewildering price of property, the size of deposit needed and the fact they were stuck in a low income bracket.

According to figures from the Office for National Statistics (ONS), the average cost of a home rose by 10.7% in England and 17.4% in London in 2014 which has deterred potential buyers.

Craig McKinlay, Mortgages Director at Halifax, said: "While there has been an increase in first-time buyers in the last 12 months, at the same time there is also a growing group of young people who believe they won't be able to get a mortgage. This difference between the reality and their perception needs to be addressed urgently if we are to prevent people from giving up on getting on the housing ladder."

In response to calls to build more affordable homes, Nick Raynsford, MP and Mark Prisk, MP, co-chairmen of the Lloyds Banking Group Commission on Housing, added: "There is no one, single solution to addressing the supply of good-quality new homes. Instead what is required is a comprehensive range of measures which will create an achievable framework for long-term housing affordability, and a lasting commitment to a wide variety of different types of developments."