27% of younger generation believe they’ll be homeowners by 25
New research has revealed that a quarter of those aged between 18 and 21 believe they will own their home by the time they’re 25.
The research from Halifax also indicated that homeownership is high on the priority list for young adults, with 59% feeling that it’s very important to own a home. However, as acknowledged by the bank and in light of price expectations where property is concerned, first-time buyers may have to face “shocking home truths.”
Of the survey respondents in London aged between 11 and 21, a fifth believe that a home can be purchased from anywhere between £50,000 and £200,000. This is somewhat lower than the average cost of a home in the capital, currently standing at £422,580.
Further, a third of those in the age bracket state that they will seek financial help from the Bank of Mum and Dad when trying to secure a deposit on their first home.
The research suggests a significant gap in knowledge for the younger generation, with expectations in some areas being far from the reality.
Commenting on the figures was Russell Galley. The Managing Director of Halifax stated: “Despite being one of the most important financial decisions we’re ever likely to make, becoming a homeowner feels like a mystery for Generation Z who will soon be thinking about flying the nest.
“Although our research found that the vast majority of 11 to 14-year-olds understand what a mortgage is, one in 10 aged 18 to 21 think Stamp Duty is money to pay for stamps – so there’s clearly a job for all of us to help kids get a better idea of what’s involved with taking the first step on to the property ladder.”