Forty-five per cent of UK adults who are yet to own a home think that they never will, according to new research by the investment management specialist, Fidelity International.

In its new Modern Life Report, Fidelity International suggested 65% of adults between the ages of 18 and 34 years are more optimistic about their chances of owning a home in the future, although the figure drops significantly for people between the ages of 35 and 54 – when only 23% of people feel the same way.

Of the 2,016 adults surveyed for research carried out by Opinium Research in April 2019, the most common reason cited for not feeling prepared to buy a property was the financial implications that come with it – 40% saying they didn’t feel financially prepared to buy a property in the future.

Fidelity International investment director for personal investing, Tom Stevenson, commented: “Home ownership is deeply engrained in the British psyche and the inability to get on the property ladder can be hard to accept.

“Renting can feel like throwing money away and the flexibility it offers is no substitute for the feeling of security that owning a flat or house can provide. These emotional considerations can matter quite as much as the obvious financial benefits of home ownership in recent years.”

The report also found the increasing cost of buying a home means that 54% of those aged between 33 and 54 years have never owned a property, and the average age of an FTB has risen from 31 to 33 over the past decade.

Fidelity International suggested the 34% of adults aged between 18 and 34 years old who live with their parents is one outcome of rising prices, and another is the number of people renting – with 41% of those aged between 34 and 54 years, as well as 24% of over-55s, continuing to rent.

Stevenson continued: “FTBs need substantial sums to get their foot onto the ladder, even with government initiatives, like HTB, and they must do so while in many cases continuing to pay high monthly rents.

“For those looking to take their first steps on the ladder, saving, or ideally investing early, is key to building up the pot that will be needed to pay deposits, fees and stamp duty.

“If you are investing for more than a few years this is likely to mean an exposure to the stock market – over longer investment horizons, shares have historically outperformed safer assets like bonds and cash. Minimising any tax due by sheltering savings in tax-advantaged accounts like an ISA also makes good sense.”

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