Can millennials afford to buy a home?
Posted on August 9, 2019.
More and more millennials are coming to terms with the fact that the property ladder is not as accessible as it once was, 20 years ago. Back in 1997, most adults became homeowners by the age of 26, whereas now, this figure has risen to the age of 34. There are many reasons as to why this could be the case, but more times than not, money is the root of it all.
As house prices continue to rise at an overwhelming pace, many millennials are stuck with the same daunting question: ‘Will I ever be able to afford a home?’
Our guardian specialists have extensively researched this all-important question; putting together a guide full of must-know facts for millennials. Within this guide, you will be enlightened on the reasons behind a struggling generation, as well as discover alternative solutions for those who wish to save pennies yet still have a safe roof over their heads.
Why are millennials struggling to buy a house?
According to the Resolution Foundation, 1 in 3 millennials will never own a home. There are many reasons as to why this struggle exists; however, research shows that the following three contributors are the most prominent amongst aspiring millennial homeowners:
Student Fees: Many graduates cannot save for a high deposit when paying off student loans.
Tighter Lending: The majority of banks now expect millennials to have a 20% deposit.
Flocking to Cities: Many millennials are living in expensive cities.
With these factors affecting a large number of millennials all over the country, the reality of owning a home before the age of 30 begins to become even more of a novelty. Take a look at our brand new guide for everything you need to know:
Are there other housing options for millennials?
Luckily, there are many alternative ways in which millennials can get a roof over their heads without breaking the bank. One of the most popular schemes in place is the guardianship scheme, which helps millennials win back their independence and eliminate the stresses which come with homeownership.
As a property guardian, you get the unique opportunity to live in and restore an empty building, without any of the nasty costs involved with buying a home. Through using a property guardian scheme, you can spend more time saving money for a deposit further down the line, rather than frittering it all away on high living costs that are impossible to keep on top of.
If you’d like to save some money while on the property ladder and learn more about our property guardian scheme, then get in touch today.