Millennial first-time buyers have made more use of family support than their boomer parents did, research from a lender revealed.
Together conducted a study to celebrate its 50th year of business, and found that a fifth of those in the millennial age bracket had asked their family to help with their deposit for their first home. This was higher than the 11% of baby boomers who did the same when they were younger.
Additionally, a fifth of millennial first-time buyers moved back in with their parents to save for a deposit, compared to 4% of baby boomers who did the same to buy their first home.
Nearly half – 45% – of millennials said they wished they had been able to get on the property ladder when prices are lower. The 19% who were homeowners said other first-time buyers should hold on to properties and pass them on to younger generations.
Baby boomers also had advice for first-time buyers – 49% said today’s generation should get on the property ladder as young as possible.
The majority of baby boomers were happy with their homeownership decision, as 52% said they had no regrets about buying a home when they were younger.
A difficult market for millennials
Alan Davison, director of customer sales at Together, said: “‘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.
“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.”
Davison added: “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. 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.
“Together is proud to say it has 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.”
