Are millennials still aspiring to own their own home?.

“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 on the homeownership ladder.

Since 1974, when Together’s founder first lent on a property, 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%. Add to this the economic effects of Covid-19 and the 2022 mini-budget, culminating in a cost of living crisis, and it would be easy to assume that more millennials would see homeownership as an unattainable dream.

In fact, the opposite is true. A whopping 60% of millennials still have aspirations to pick up the keys to their own property within the next five to ten years, despite the odds being stacked against them, according to research commissioned by Together and conducted by Censuswide, surveying 2000 adults throughout the UK.

Let’s look at some of the reasons why millennials continue to see property as a key investment.

Can you bank on bricks and mortar?

The honest truth is, there are risks and gambles when making any decisions relating to home buying and home ownership. Mortgages and property investment should always be a well-researched and thoroughly thought through life step.

Of those surveyed that said they were looking to own in the next five to ten years, over 41% of millennials said that one of their three primary reasons was the financial security in owning an asset that can improve in value over time, rather than depreciate.

Having seen the increase in property prices over the decades, it’s easy to see why. Even as industry experts expect a slight dip in house prices in 2024, they ultimately expect more increases over the next five years, adding a potential £45,000 to the national average by 2028.

Property was also seen as being an easier, more traditional investment; with millennials also stating:

• They wanted property to rent out in the future and make additional income (22%).

• Investing in property was easier to understand than other investments (18%).

• Investing in property is less volatile than other long term investment schemes (13%).

Bringing up baby… and toddler… and teen

Family was also a major motivator for millennials looking to buy, with:

• 37% stating that they wanted something physical to pass on to children.

• 27% wanting a place that their family could make memories in.

• 26% wanting enough space for their expanding brood.

Because their parents did

Talking about family, 13% of millennial respondents said that they wanted to buy because their parents or older relatives have always owned their own homes. It’s important to remember that every case and every situation is different – so what worked for one, might not work for another.

That said, owning your own home is still very much seen as an important traditional life milestone for many people in the UK, much like starting a family or having children, even if these events are happening later in life. The average first time buyer in the UK will hit 34 in 2024, compared to just 27 years old in 1974.

2024 brings with it Together’s 50^th year of opening doors to first time buyers; and the research cements homeownership ambitions, despite a high-cost climate, with demand only strengthening from the 1970s to today.

Ryan Etchells, Chief Commercial Officer at Together, told us…

“Over the last 50 years, supporting the homeownership and commercial property ambitions of the UK, we’ve seen our fair share of ups and downs in the market.”

“Our research proves young people’s unrelenting desire to open doors to new properties, whether that’s to create family memories or develop exciting new projects for wider public use. Prices may be high, and many first-time buyers will be hopeful for some inflationary and interest rate relief this year, and yet, demand is stronger than ever. Millennials seeing value in property ownership as not only an investment vehicle, but also as a part of their future succession plans, sheds a positive light on the property market moving forward.”

If you’re a would be first time buyer, ensure you do your research and fully educate yourself on both the potential risks and rewards, such as how a change to interest rates could affect your monthly payments and affordability.

Head to our first time buyer mortgages page to see if we can help you get on the property ladder… and you don’t even have to be a millennial to apply.

Ensure that you can keep up with the regular mortgage payments as failing to do so could result in your home being repossessed.