Despite common perceptions – young people are still buying homes or working towards homeownership
In the past 10 years, average housing prices have increased dramatically while wages have generally remained the same across the UK.
This has lead to a common feeling of hopelessness amongst young people, as the likelihood of property ownership remains an unrealistic fantasy and the uphill struggle feels more and more taxing.
Though clearly the fact that less young people own homes is a symptom of difficult economic conditions and disparate distributions of wealth across the UK and worldwide.
It is often repackaged as a deserved consequence of their luxurious millennial indulgences such as avocado toast and an inability to discipline themselves, save and invest. Keep Reading.
Are there any young property owners today?
Recent figures show that by the age of 35, 24% of people across Europe own a property with a mortgage.
Similar figures were shown for those aged 35 and over, with 24% of people being property owners.
These figures suggest that despite increasing home prices, not all young people have given up the hope that they could one day become a homeowner – and at least one-quarter of people have made this hope a reality!
If young people do want to save to buy a home, there are several government schemes in place to help them get on the housing ladder:
Help to Buy loan
Available for those who already have 5% of the property to cost to contribute as a deposit, Help to Buy loans are only available on properties that cost less than £600,000 and the government offers 20% of the property cost at 0% interest for 5 years. Click here for more info.
A payment solution offered to those earning less than £80,000 across the UK and £90,000 per year in London.
This option allows first-time buyers to buy a share of the home from a housing association while renting the remaining part if they can’t afford the whole home.
If using this option, buyers must ensure they find a mortgage provider that is happy to lend on a shared ownership property.
This scheme is available for first-time buyers under age 40. Buyers can receive a 20% discount based on the market value of the property (specifically for new-build properties).
One condition is that buyers may not sell or let the property for at least the first five years after purchase.
What does this mean for developers?
With more options for first-time buyers to get financial help, developers find themselves with a saturated market and more reason than ever to take those first steps with their imagined projects.
Falling rates of homeownership still remains an issue for young people, and more initiatives must be taken to ensure equal opportunities for homeownership across social backgrounds.
However, for the time being, as more people take advantage of government aid to help them climb onto the property ladder.
Developers should take into consideration the fact that homeownership is still a prominent goal for young people.
See some of the property developments we have financed
- Detached Property Developments in Bethersden, Kent
- Barn to Bungalow development in Arundel
- Town centre apartment developments in Dunstable