With 2024 bringing with it Together’s 50th year of opening doors to property buyers, a look back to the 1970’s property market proves desire for homeownership remains strong – even with higher costs today.
Millennial first-time buyers remain unshakeable in their ambition to get on the ladder in the next 5-10 years, with their baby boomer parents offering support along the way.
According to new research from property lender, Together:
- A fifth of millennials had to ask their family for the deposit for their first house versus just 11% of baby boomers.
- A fifth of millennials (20%) reportedly moved back in with parents to help save for a deposit – compared to just 4% of baby boomers when they were young.
- 45% of hard-up millennials wish they’d been able to get on the property ladder sooner when prices weren’t as steep.
- This comes as 19% of millennials who’ve managed to get on the ladder advise other FTB’s to ‘hold onto their property and pass it onto younger generations’.
- Nearly half (49%) of baby boomers advise today’s FTB’s to ‘get on the ladder as young as possible’, and are now faced with having to play a crucial role in helping the younger generation to do so.
- Over half (52%) of baby boomers admit they don’t have any property regrets given the notably easier and cheaper task of getting on the ladder 50 years ago.
FIRST STEPS
Alan Davison, Director of Customer Sales at Together, says: “When I was your age, I’d already bought a house”. If a millennial had a pound for every time they had heard this phrase from a parent, relative or older colleague, they’d probably have enough money to purchase a property! Or, they might if house prices were still at the levels they were in the 1970s and 1980s when their parents took their first steps onto the property ladder.
Alan Davison, Together“For the baby boomer generation, many of whom would have first bought when the market was very different and arguably easier to access, there is little need for regret.
“This is understandably quite different from millennial first-time buyers today, who are facing an incredibly difficult market stalked by high inflation and looming interest rate decisions.
“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.”
STARTLING RISE
And he adds: “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 1970’s 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.
“Together is proud to say they have been opening doors for first time buyers over the last half a century. Helping people, no matter what generation or challenges they may face, get on the property ladder and achieve their life goal and ownership ambition.”
