MORE and more young adults want to get in on the fast reviving property market.
The surge of interest in property means that some 65 per cent of young adults in the UK plan to buy their first home or move house during the lifetime of Help to Buy, according to new research.
The second phase of Help to Buy has been brought forward from January 2014.
It is particularly generating interest among young people with almost one in three 18 to 29 year olds more likely to buy a new build home now that government support is available compared with 13 per cent of all adults. Unlike part one of the Help to Buy scheme, the new mortgage guarantee offering loans of up to 95 per cent, is available on all property rather than just new build homes. One in five young adults already say they are more likely to buy a second hand home as a result of Help to Buy compared with 12 per cent of all adults.
Latest research has also found that home ownership ambitions are strongest among 18 to 24 year olds Some 83 per cent of those aged 18 to 24 feel that home ownership is an important goal with 57 per cent feeling it is very important.
Only 1 per cent of 18 to 24 year olds feel home ownership is not important at all.
"Raising a deposit is the biggest challenge buyers' face and the guarantee will help them over this initial hurdle, leaving them with monthly payments they can afford. It will also mean home owners with limited equity have better prospects of moving up the property ladder, which in turn frees up more homes for first time buyers," said Brian Murphy, head of lending at the Mortgage Advice Bureau.
The news comes at the same time as a report showing the average price of a home in Britain will jump by a quarter in five years to reach a record figure of nearly £280,000.
The number of loans handed out to buy a home, rather than just to remortgage an existing loan, is rocketing, the Bank of England said yesterday.
In August, 62,226 house purchase loans were handed out, the largest number since February 2008 and a 30 per cent increase on August last year.
The existing Help to Buy scheme was launched in April, offering prospective home owners the chance to buy a new-build home with a deposit of five per cent.
To help them, they are given a loan, which is interest-free for the first five years, worth 20 per cent of the property price.
However, the new scheme is open to old as well as new-build homes.
The Government will guarantee up to 15 per cent of the home loan as an insurance policy for the banks lending the cash.
Guarantee gives options to buyers — page 4