Using a laptop to remortgage with Trussle

  • Millennials are being forced to make sacrifices far beyond Generation X or baby boomers to get onto the property ladder.
  • Millennials are three times more likely to move back in with parents than Gen X, more than twice as likely to put off getting into a romantic relationship, and twice as likely to delay having children.
  • House prices are 15 times the value they were 40 years ago, soaring 1,382% and rising almost twice as fast as wages.

That’s according to our latest study of over 2,000 mortgage borrowers.

Millennials are making more compromises than previous generations

We found out that millennials (aged 18-34) are having to make sacrifices unheard of in previous generations to get onto the property ladder.

When asked about the compromises made to buy their first home, one in five millennials had to move back in with their parents, compared to just 5% of Generation X (age 35-54), while a further one in five had to take a second job.

Millennials are also more than twice as likely to put off getting into a romantic relationship, twice as likely to delay having children, and 3.5 times as likely to sell their car, compared to the generation before them.

Comparing Sacrifices By Generation To Get On The Housing Ladder

The findings demonstrate the impact of soaring house prices and slow wage growth on first time buyers:

  • House prices are almost 15 times more expensive than they were 40 years ago, rising almost twice as fast as wages.
  • Since 1978, the average UK house price has risen from £14,236 to £211,000*, soaring 1,382%. In comparison, the average annual UK salary has risen from £3,269 to just £26,500**.

Buying a home is no longer a top goal for young people

For a lot of young people, the dream of home ownership is so unachievable that it’s no longer a top life goal.

In fact, when asked about their top three life goals, millennials are focused on:

  • travelling the world (27%)
  • having children (24%)
  • finding the perfect job (24%)

Buying a first home came only fifth on their list, much lower than previous generations:

  • Baby Boomers (42%)
  • Generation X (36%)
  • Millennials (21%)

The study also showed that younger people are almost six times as likely to buy with a friend, and three times as likely to buy with a sibling compared to Generation X, potentially leading to complications further down the line.

Making home ownership more affordable and accessible

Our CEO and founder Ishaan Malhi, says that more can be done to help 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’ve 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.”

* UK Housing Data
* * UK Salary Data