Shared ownership is becoming the only option for some Millennials wanting to get one foot on the property ladder. A recent survey conducted by the M & S Bank* revealed that 60% of 18-35-year-olds would consider entering into a mortgage with other people in order to secure a new home. Those would-be first time buyers over the age of 35, 26% were less likely to consider going into a house buying consortium.
Their research also showed that 20% of the Millennials they surveyed could never imagine buying their own home - these people have been coined at the Generation Rent.
M & S commented: ’Many young people are trapped in Generation Rent because house prices seem increasingly out of reach. For many, homeownership appears possible only through sacrificing certain aspects of their current lifestyle, be that moving to a different area, moving to a smaller property than they’re renting, or seeing their disposable income take a significant hit,’ said Paul Stokes, head of products at M&S Bank.
‘But our research has shown that millennials are keen for an alternative option and joint home ownership is one of them. From housemate to mortgage-mate is a natural progression which can enable more people to achieve the otherwise unattainable dream of property ownership,’ he added.
A peer to peer lending platform survey suggested that Millennials, depending on where they live will spend a staggering £1 million in rent during their lifetime. Rents rose again last year by 1.57% in the East of England, bringing them to £906.53.*2
However, there has been some good news recently for the first-time buyer as the industry predicts that they will be a glut of first-time properties come onto the market soon as landlords decide to sell up due to harsher laws concerning renting out property in the UK.*3
If you are a first-time buyer looking to get on the property ladder why not pop into your local branch of Intercounty for a coffee and a chat to discuss your options.