Almost half (46%) of aspiring homeowners have said they would use pension savings towards a house deposit if the rules allowed, Leeds Building Society has found.

The society said its latest research points to the pressure would-be buyers face in raising the deposit, as 47% do not expect to ever own a home, while 18% definitely expect to buy. Furthermore, 38% of those who do expect to buy think they will be aged 40 or older at the time of purchase.

Leeds Building Society’s new report, Building economic security across generations, has shown how barriers to homeownership can create financial consequences across families.

Aspiring buyers are more likely to depend on relatives to raise a deposit, while those providing that support may have less money available for their own savings and retirement.

The findings showed that 61% of aspiring buyers whose parents own their home expect to buy, compared with 42% of those whose parents do not. More than half (51%) of aspiring homeowners have received no family support.

Among people supporting, or expecting to support, both younger and older generations, over three quarters (78%) said it puts pressure on their finances, and 47% worry it could weaken their retirement security.

Furthermore, 58% of homeowners say housing wealth is essential or very important to their retirement plans, while 80% aged 25 to 34 expect it to contribute to retirement income.

CEO at Leeds Building Society, Annette Barnes, stated: "Our research shows that decisions around housing, savings, and retirement are becoming increasingly interconnected, with many people seeing home ownership as a route to financial security. Families that own homes today are stretching their own finances to support loved ones and are passing on the opportunities that home ownership gave them, and yet, not everyone feels confident that they can get onto the housing ladder, which poses broader questions for society in the future.

"At Leeds Building Society, we’re working hard to reduce the barriers to entry within the housing market, ensuring we have products available to help those without family support, whilst also considering how we support members whose housing wealth is increasingly becoming a part of their retirement planning.”

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