More than half of all twenty-somethings want to buy a house before turning 30, but the number of years spent saving for a deposit make it highly unlikely, according to a new report.
From travelling the world with just a backpack in tow to landing your dream job, most people have various boxes they want to tick before reaching the grand ol’ age of 30.
But, one milestone on many a young person’s list is looking like it’s increasingly becoming an elusive dream: owning your own home.
According to a new report conducted by SpareRoom – a UK-based flat-sharing site – the number of years younger millennials will spend saving up for a deposit is on the rise. Again.
By conducting a survey of over 5,000 current UK renters, they found that not only do more than half (52%) of all twenty-somethings want to buy a house before turning 30, but it’ll take Londoners 68 years to save for a deposit.
Yes, you did read that correctly.
However – if you live outside of the country’s capital, it’ll apparently take you a mere 25 years to save for one.
According to the research, the average UK salary is currently around £27,600 (£34,473 in London) and the average house deposit has been estimated at around £33,000 (or £106,577 in London). With tapping parents for money not being a plausible option for most (just one in three anticipates help from parents), 87% of people in their 20s intend to save a deposit from their salary alone.
And people are coming to the stark realisation that they may need to move away in order to do this, with 82% of people overall believing they’ll need to move to another town or city to get themselves on the property ladder – while in London, the figure rises to 93%.
Despite the hurdles, 86% of millennials currently flat-sharing want to own their own place because they’d rather pay into their own property then a landlord’s.
And the research doesn’t consider other factors such as: being in a relationship so you move in together (the deposit is then halved) or winning the lottery.
But some experts say investing in property isn’t always the be-all and end-all.
“Buying a house isn’t a foolproof money maker. The UK’s property market is far less certain than just 18 months ago, and buyers are faced with rising inflation and interest rates,” says financial advisor at MoneyComms, Andrew Hagger. “House prices are also stalling and in London there’s signs they’re falling.
“This may seem like good news to first-time buyers but, if the trend continues, there’s a strong possibility people will end up trapped in negative equity.”
“The financial pressure of buying a house isn’t just the deposit and the monthly mortgage repayments,” he adds. “If anything goes wrong, you have to pay for it and this can be a huge cost. Young people need to consider whether they can truly afford this without getting into difficulty. Buying a house in your 20s ties you to a long-term responsibility that can be tricky to get out of.
“Property can be a great investment, but you need to weigh up whether the potential profits currently outweigh the risk of ending up in negative equity. This is a decision that should not be rushed.”
However, all is not lost; an affordable flat-pack house could well be the solution we’ve all be waiting for.
Images: Unsplash / Matt Jones