Non-homeowners in Erewash aged 35–54 giving up on home-ownership due to cost-of-living

Stark new research has shown that a significant number of people aged 35-54 in Erewash are abandoning the dream of home ownership, and in doing so, could be losing millions in lost lifetime wealth.

The data by Yorkshire Building Society revealed that affordability of housing and the cost of living were major concerns, something the company said highlighted the financial consequences of renting versus owning a home.

A fifth (21%) of UK adults aged 18–34 and nearly two-thirds (59%) of those aged 35–54 are uncertain if they will ever own a home or have no plans to do so. Key barriers include the financial commitment, affordability issues, and the high cost of living.

Nearly half (41%) of respondents in Erewash cited the cost of living as the main obstacle, with 43% delaying their purchase due to high prices. A further 47% feel so overwhelmed by the current market that they’ve stopped searching for a property.

Analysis has suggested that renters could be £2.6 million worse off over their lifetime compared to homeowners. This figure comes from comparing renting and buying over a 55-year period, starting from the average first-time buyer age of 33 to an expected lifespan of 88 years.

A statement said that, over this period, renters could end up paying significantly more than homeowners, without building any assets, and whilst homeowners could accumulate a property worth £2.6 million, renters would not have a comparable asset and would continue paying for accommodation in retirement, compared to homeowners who would have the flexibility to use their property's capital to support their lifestyle.

Ben Merritt, Director of Mortgages at YBS, said: "These findings highlight a worrying trend of declining faith in home-ownership among prospective first-time buyers. Our analysis shows the significant financial disadvantages of long-term renting."

With the current economic pressures, it is crucial for the housing market to offer viable options that help individuals and families secure their financial future. Restoring confidence in home-ownership is essential for ensuring a stable and prosperous future."

"Despite the challenges, the long-term benefits of home-ownership are significant. By overcoming the barriers to buying, more people can secure a stable and prosperous future for themselves and future generations."