Although 95% of millennials would like to buy a house in the future, nearly a third (31%) do not think it will happen and 29% were only hopeful about their chances, cashback shopping site, TopCashback has found.
Just 39% were sure they will buy a property. The uncertainty as to whether they will be able to invest in bricks and mortar means millennials are focusing on financial security and life experiences as savings goals instead.
Just over a third (35%) of millennials said a deposit for a house is their main savings goal, though that is is trumped by building an emergency fund (51%), a savings cushion (43%), achieving financial freedom (40%) and having money to travel and go on holiday regularly (37%).
Natasha Rachel Smith, consumer-money expert for TopCashback, said: “Our research shows millennialsare being sensible with their money and thinking about financial security.
“However, the current economic climate, and a change in lifestyle – people marrying and having children later – means millennials are favouring experiences over possessions and have different financial priorities at this point in their lives.
“While it may be later in life and less of a priority than it was in the past, it is important for millennials to put money aside regularly and be savvy with their spending, so they are prepared when the opportunity to buy a property does arise.”
Similarly, millennials’ main goals in life were to be healthy (49%), have financial freedom (36%) and be financially stable (30%). Buying a house came eighth on the list at just 19%.
Even of the millennials who are optimistic about getting on the property ladder, just under half (47%) thought it will happen in the next five years. As to why millennials are looking to get onto the property ladder sooner, 64% blamed the cost of housing rising quicker than salaries and 56% not earning enough money for a deposit. Some 37% put it down to living costs being too high to save.
Of the 31% of millennials who are unsure they will own a property, more than half (56%) saw privately renting with a partner as a long-term preference and more than a quarter (26%) planned to rent a place on their own.
With the chances of owning a house off the cards, millennials have alternative goals for the next five years.
More than a third (35%) would like to rent somewhere with outdoor space or a garden, three in 10 (29%) would like to rent a property with a car parking space and just over a quarter (26%) would like somewhere they could decorate to their own taste.
In the next five years, 13% saw renting somewhere that it large enough to host dinner parties as a goal.