More than half of young Scots say the cost of living has derailed homeownership plans: Pepper – Mortgage Strategy

More than half (54%) of Scottish adults aged 18 to 34 say the rising cost of living is having the biggest impact on their ability to buy a home, Pepper Money reveals.

Research from Pepper Money’s Scotland Specialist Lending Study shows that 39% of Scots believe their homeownership plans have been affected by affordability pressures, rising household costs and savings challenges overall.

It’s a similar picture among non-homeowners with adverse credit, where 55% say the cost of living is having the greatest impact on them.

It also found that 5% of Scottish adults with complex income say they plan to purchase a home to live in within the next year.

Among Scottish non-homeowners with complex income, 33% have no savings or investments, compared with 29% of non-homeowners overall, while 20% say they do not have enough savings for a deposit.

With everyday costs continuing to put pressure on household budgets, Pepper Money says limited financial resilience can make it harder to build a deposit or feel confident about taking the next step towards homeownership.

The self-employed are another group facing a mortgage journey that can be more complex.

Findings show that 11% of self-employed Scottish adults say they plan to buy a home to live in within the next year, highlighting a significant pool of potential buyers whose income may require a more considered assessment by lenders.

The findings come as Pepper Money launched its first charge mortgage proposition in Scotland.

Pepper Money director of sales Paul Adams says: “For younger people in particular, the pressure is stark. Our research shows more than half of 18 to 34 year olds say the cost of living is having the biggest impact on their homeownership plans.”

“For many aspiring homeowners more broadly, the immediate challenge is building a deposit while everyday costs continue to squeeze household budgets, with 20% saying they do not have enough saved for one.”

“Savings challenges can quickly become homeownership challenges, especially for customers with complex income or adverse credit, whose circumstances may not fit neatly into standard lending criteria.”