Developing in line with rising property prices, it has now been highlighted in the Generation Rent Report that around one third of UK youths expect to still be paying off mortgages when they’re over 60, and around half then drawing concerns as to how they will then be able to afford making mortgage repayments once they have entered into retirement.
Despite the rise in prices and associated mortgage implications, demand for housing still remains high, with people, no matter how difficult it may now be, seemingly still determined to own their own home. Of course, when considering woes as to the ability of youths to afford residential property, this brings with it concerns as to how both the individual can garner personal housing if their capacity to repay a mortgage is questionable.
One way in which people may be looking to overcome this is through continued work. Though not a favourable option for most, some 34% of people predict that they will be working beyond retirement so that they can pay off their mortgage, with 44% people drawing up concerns that they would not be able to do so if in retirement. Additionally, 51% of individuals have laid out concerns as to how paying for a mortgage may hinder the capacity to save up for retirement.
As for how property can be made more affordable, or justifiable, around 49% of individuals regard having a partner as one of the key measures for judging the affordability of owning their own home, whilst 34% agree with the extending of a mortgage beyond 25 years to be one of the key ways to make the investment more affordable.
Despite all these concerns, however, it has been reported that the quantity of first time buyers has increased considerably over the past few years, as some 300,000 individuals made their leap into the property market over the course of 2015.