- High interest rates and low affordability are impeding would-be first time buyers in
Europe , in stagnant eurozone housing market. - Renters are also feeling the pinch, as over half (54%) struggle to find property within their budget.
That’s according to a new survey of 5,000 European consumers from
Buying still seen as financially sensible and desirable, but barriers to saving and high interest rates are thwarting home seekers
In most European markets surveyed, buying is still seen as the most sensible financial option compared to renting, as half (47%) believe this. This is with the notable exception of
But despite clear aspirations to own property, 64% of European non-homeowners claim that they don't have enough money saved to put down a large enough deposit to buy a home. And as high cost of living dampens savings expectations, 58% don't foresee being able to save up enough money to put down a deposit to buy within the next 3 years.
High interest rates pose another major barrier. With mortgage rates in the
Affordability problems rise in rental sector too, and Southern Europeans feel most financially stretched
The majority of those Europeans who don’t own homes (62%) claim they only rent because they can’t afford to buy.
But renting is no ‘easy out’. As the cost of living crisis continues to take its toll on the consumer wallet, over half (54%) of non-homeowners claim that they are struggling to find a rental property within their budget, with this figure rising to 63% in Spain.
What’s more, 58% of Europeans believe they can’t live where they want to because rent or property prices are too high, suggesting housing costs are negatively impacting quality of life across the
Feelings of being out of pocket are particularly prevalent in
“Every country has its own nuances but our data shows home seekers across
“As ever, choosing the right moment to move is a significant decision. In a competitive environment for home-seekers, agents and marketplaces have a major role to play by providing people with as much information and choice as possible, to ease the search journey. Finding a place to call home should be an attainable and enjoyable experience, no matter the external economic context.”
ENDS
For more information, contact:
firstlight group
adevinta@firstlightgroup.io
+44 (0)20 3617 7240
Methodology:
5179 respondents (aged 16+) across
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© OMX, source