The UK’s next generation of first-time buyers think it’s easy to get onto the property ladder, with one in five 11 to 14-year-olds expecting to borrow as much money as they want to buy a house.
Research from Halifax found one in five (20%) 11-21-year-olds in London think they can buy a home from as little as £50,000 up to £200,000. However, the average first-time buyer house price in London is £422,580.
Russell Galley, managing director at Halifax, said: “Despite being one of the most important financial decisions we’re ever likely to make, becoming a homeowner feels like a mystery for Generation Z who will soon be thinking about flying the nest.
“Although our research found that the vast majority of 11 to 14-year-olds understand what a mortgage is, one in 10 aged 18 to 21 think stamp duty is money to pay for stamps – so there’s clearly a job for all of us to help kids get a better idea of what’s involved with taking the first step on to the property ladder.”
Future first-time buyers have high hopes for becoming homeowners and 59% of 18-21-year-olds feel it’s very important to own a home.
Over a quarter (27%) those aged 18 to 21 believe they’ll be homeowners by the time they are 25. But in reality they will have to wait another five years until they are 301, or 32 if they are planning to live in London.
A third of young people aged 11 to 14 are banking on mum and dad to cough up the cash.
More than one in five of their 18 to 21-year-old counterparts (21%) are relying on the government to help them on to the property ladder.
Almost one in four (23%) 15 to 17-year-olds believe that only rich people own their own homes.
Young men are optimistic, as 23% of those aged 18 to 21 reckon a deposit of between £5,000 and £10,000 is enough to buy a home. Only 5% of females thought that would be enough while the actual UK first-time buyer deposit mark at £32,3212.
A fifth (20%) of 18 to 21-year-olds are counting on inheritance to pay off their mortgage, with men being far more hopeful of a legacy clearing their mortgage than their female counterparts (31% vs 18%).
When it comes to buying a house, older teens and young adults (18 to 21-year-olds) are less realistic with one in six (15%) thinking it takes more than a year to complete a home purchase.
The internet leads the race as the go-to place to buy a property (36%) and rising to 44% for 18 to 21-year-olds. This is followed by a ‘house shop’ (33%) and the bank (27%).
Today’s youth also surprisingly consider meeting their new neighbours a bigger priority than getting WiFi – 32%, compared to 24%.