The following is a post written by a guest contributor…

According to a 2011 study conducted by the National Centre for Social Research (NCSR), nearly two thirds of the people living in Britain believe that they have no chance, financially, of ever being able to afford to buy their own home.

Brits Turn To Renting

The study, which included people aged 20-45, concluded that the current generation of British workers has become a generation of renters rather than homeowners. This mimics a situation that has already become something of the norm for a large percentage of people living in many European countries, as well as the United States.

In spite of these results, however, three out of four survey participants still expressed a desire to eventually purchase a home of their own.

Experts who conducted the study added that most of the 8,000 people interviewed believed that one of their biggest obstacles to property ownership was the reluctance of banks, in the current economic climate, to approve loans.

Survey participants also said that they had no desire to go through the complicated process, not to mention stress, of applying for a mortgage.

According to the study, 84 percent of potential borrowers expressed certainty that a bank would not give them a loan and would even look for excuses to reject the application.

Likewise, 92 percent of the survey participants said that they believed it would be extremely difficult for a first time homebuyer to get any kind of a mortgage.

The survey also revealed another obstacle and that is the large cash down payments required for many home purchases. The majority of survey participants admitted that they would be unwilling to scrimp, save and sacrifice just in order to save the cash required for a deposit on a new home.

Some housing experts have expressed concerns that if the results of the study represent the beliefs of the mainstream population, the housing market may be in for a slow period in the foreseeable future.

Tempted To Buy?

Studies like this one have spurred some banks to create loan incentives to encourage first time borrowers to take the first step toward home ownership. Along with these incentives, banks and mortgage companies are also offering personalized financial planning advice for prospective homeowners.

According to mortgage and lending specialists, before deciding that a loan application would be automatically rejected, potential homeowners should do their own homework and seek financial advice from a personal banker or lending expert.

A financial specialist can help a prospective homeowner budget for a down payment and can even show borrowers how they can negotiate to trim thousands of dollars off this initial cash deposit.

Additionally, you can also find ways to manage your finances so that the prospect of eventual home ownership can become an economically viable reality, instead of an out of reach, impossible dream.

Photo credit: James Thompson