According to Linden, today’s generation of first-time buyers (FTBs) accepts pooling funds with friends is one of the only affordable routes into property ownership.
The developer has seen a 25 per cent increase in the proportion of first-time buyers joining up to buy with friends or siblings over the last twelve months, with this group now making up almost one third of all first time buyer purchases.
With the average deposit required now at £23,967 according to Halifax, it is becoming more and more difficult for young people to save up for their first property in the conventional way, over the course of two or three years. Instead first-time buyers, now on average aged 33, are viewing their first property purchase as a continuation of their flat sharing days, by buying jointly with a like-minded friend.
IT Managers Michael Adams, 29 and Jamie Orminston, 34 have recently clubbed together to buy a two-bedroom apartment in Kingswood. They met when working together a few years ago and when Jamie realised he could not afford to buy alone, he suggested to Steve that they put their money together to purchase the £146,470 apartment.
Jamie said: “I could not have afforded to buy a property by myself and was fortunate enough to have a friend who I knew I could trust, who was also looking to buy. It made sense to pool our finances and buy a property with two bedrooms that we both really like. We see this purchase as an investment and expect to live here for a year or so before moving on up the ladder.”
Jamie and Michael contributed equally towards the five per cent deposit and decided to buy a new home in order to avoid chains and maintenance costs.
Philip Davies, chief executive of Linden Homes, commented: “Buying jointly with friends is becoming increasingly popular as property prices rise even further out of reach of salaries and young people struggle more and more to fund their own first home purchases.
"By pooling savings, raising a deposit becomes more manageable and the combined income helps bridge the affordability gap, enabling the friends to buy a property they actually want to live in.”
