Millenials are almost six times more likely to buy a property with a friend than Generation X, according to online mortgage broker Trussle.
The company spoke to 2,000 mortgage borrowers and found 17 per cent of 18-34 year-olds said they had bought a property with a friend when they would have preferred to buy alone. This was nearly six times higher than for 35-54 year olds, where 3 per cent fell into the same category.
Three times more millennials, 15 per cent, said they had bought a property with a sibling when they would have preferred to buy alone, compared to 5 per cent of the older group.
There was a similar difference between the age groups when it came to how many had bought a property with a partner when they would have preferred to purchase alone, 16 per cent for millennials and 5 per cent for Generation X. A small amount, 2 per cent, of those over the age of 55, also fell in to this category.
Trussle’s study shows the struggle of millennials looking to purchase their first property while house prices have been rising at nearly twice the rate of wages.
The average house price has risen from £14,236 in 1978 to £211,000 today, an increase of 1,382 per cent. The average annual UK salary meanwhile, has risen by 710 per cent, from £3,269 to £26,500.
Other evidence Trussle found of the decreasing affordability of home ownership was the fact 16 per cent of millennials, compared with 5 per cent of the generation before them, had to move back in with their parents to get on the property ladder. To save money to buy a property, 16 per cent of millennials moved back in with their parents, something 5 per cent of Generation X did and 1 per cent of baby boomers did.
Trussle founder and chief executive, Ishaan Malhi, says building new homes is not enough to turn things around for young buyers: “The housing landscape has changed drastically since Generation X were buying their first homes. House prices have risen almost twice as fast as wages over the past forty years and young people are being forced to put their lives on hold in a bid to join the property ladder.
“It shows just how unaffordable it currently is for first-time buyers and there needs to be serious commitment to innovation to make home ownership more affordable and accessible to young people once again.
“Building new homes is not enough. We have seen new moves from the Government to enable renters to build credit, which is a step in the right direction to help young people. However, the major sticking point is that mortgage products are outdated. To fit the current landscape, lenders need to take a long term view on an individual, taking into account earning trajectory to assess affordability, and creating individual mortgage products based on personal circumstances.”