Research shows generational differences in the approach to homeownership
One in five millennials had to depend on family support for the deposit on their first home, new research from property lender Together has shown, highlighting the financial struggles faced by the generation as first-time buyers.
According to the study, a larger proportion (20%) of millennials – those born between 1981 and 1996 – relied on family assistance for their first property purchase, a stark contrast to the 11% of baby boomers who needed similar help.
It was also revealed that 20% of millennials have moved back with their parents to save for a deposit, compared to just 4% of baby boomers – those born from 1946 to 1964 – during their younger years.
The findings further underscore the challenges millennials face in the current property market, with 45% expressing regret at not being able to purchase a home earlier when prices were lower.
Among those who have managed to buy a property, 19% advise first-time buyers to retain their homes and eventually pass them on to younger generations. In contrast, nearly half of the baby boomers (49%) recommended getting on to the property ladder as early as possible, acknowledging their role in supporting the younger generation’s homeownership aspirations.
The report also sheds light on the baby boomers’ perspective, with 52% stating they have no regrets about their property decisions, given the comparatively easier and more affordable market conditions they experienced 50 years ago.
Alan Davison, director of customer sales at Together, commented on the generational disparities, noting the significant increase in house prices since the 1970s and 1980s.
“Since 1974, when Together’s founder first lent on a property mortgage, the average house price has shot up from £8,915 to £284,950,” Davison said. “Even when adjusted due to inflation, that equates to a startling rise of 158%.
“With this cost pressure front of mind, we’re seeing first time buyers of the 1970s do what they can to help today’s first-time buyers get on and then cling to the ladder. Indeed, many of today’s first-time buyers aim to do so with a key priority of ownership being to pass down this valuable asset to future generations.”
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