New research from Bank of Scotland shows that 25% of young people in Scotland say a lack of knowledge is a key barrier to home ownership, with 39% unable to confidently explain how a mortgage works.
The survey of over 2,100 18 to 34 year olds living in Scotland, found that the greatest obstacles to getting onto the housing ladder remain affordability (73%), saving for a deposit (62%), and the availability of suitable properties (34%).
Currently, around half of young Scots either rent from a private landlord (34%) or live with their parents (16%), and a fifth (21%) hold a mortgage.
Fewer than a quarter (23%) of those living with their parents are doing so through choice, and three quarters (75%) are living in the family home because they can’t afford to move out.
Young Scots who are aiming to get a foot on the property ladder believe this will be achievable by the age of 31 – slightly longer than the current average age of Scotland’s first-time buyers of 30.
Some of Scotland’s young adults anticipate that their home-owning dreams will be helped by inheritance, with one in three (34%) expecting to receive inheritance in the future, and half (50%) intending to spend this money on a property.
However, just over one in 10 (11%) believe they will never be in a position to afford their own home.
Ricky Diggins, director, Bank of Scotland, said: “Young people in Scotland who want to realise their home-owning dreams continue to be affected by issues around affordability and availability of properties.
“Our survey shows that a third of adults under 34 are struggling to find a property that’s right for them and a sixth continue to live in the family home whilst they save for their next step.
“Our research also revealed that young Scots don’t feel financially confident when it comes to understanding how mortgages work, feeling this knowledge gap is impeding their progress onto the housing ladder.
“Asking friends and family members to share their experiences is a great way to increase confidence, and getting in touch with your bank to discuss the basic steps, will help demystify the process.”