Millennials’ hopes of getting on the housing ladder boosted by stamp duty change
Around three in five (58%) millennials currently saving for a house deposit are more confident in their ability to achieve their goal following the Chancellor’s stamp duty changes.
Research from Foresters Friendly Society found that one in seven (17%) are much more confident following the announcement that stamp duty would be cut for first-time buyers purchasing properties worth up to £300,000.
Paul Osborn, chief executive for Foresters Friendly Society, said: “As young people continue to strive to get on the housing ladder, it’s hugely important that they use the most suitable products to help them achieve their savings goals.
“While economic uncertainty tends to push people towards options deemed as lower risk, doing so can mean forfeiting much needed returns and makes the effort of saving for a house deposit feel even more of a struggle.”
The Lifetime ISA (LISA) was developed to specifically help those under 40 in their long-term saving.
And while 75% of people in this age group are aware of the Lifetime ISA, only 11% of those eligible have taken it up.
Younger savers are less aware of the best ways to save at their stage of life with only 9% using ISAs and five per cent, stocks and shares.
Those that are saving for a house deposit are instead opting for savings accounts (43%), cash ISAs (27%), and current accounts (24%) as their preferred way to save.
Osborn added: “While it’s encouraging that three quarters of those under 40 are aware of the Lifetime ISA, it is evident that more work needs to be done to help them understand the role that it can play in their long-term savings plan.
“The 25% government bonus offers significant savings support at a time when inflation continues to outstrip wage growth and is putting pressure on people’s savings.”