07 Feb 2018
The UK's next generation of first time buyers is facing shocking home truths about getting on the property ladder.
For example, one in five children aged 11 to 14 believe they can borrow as much money as they want to purchase a house.
Research from Halifax found a disjointed view of home ownership among young people aged 11 to 21. The research showed young people have little knowledge or understanding about what could well be the biggest financial commitment of their lifetime.
A third of 11 to 14-year-olds are banking on Mum and Dad to cough up the cash, while more than one in five of their 18 to 21-year-old counterparts are relying on the government to help them on to the property ladder.
Nearly 60% of 18-21-year-olds feel it is very important to own a home, but the report found a clear gap in house price outlook.
One in five 11-21-year-olds in London think they can snap up a home for as little as £50,000 – when the average first time buyer house price in London is actually £422,580.
While over a quarter of those aged 18 to 21 believe they will be homeowners by the time they are 25, Halifax says in reality they will have to wait another five years until they are 30, or 32 if they are planning to live in London.
Nearly a quarter of young men aged 18 to 21 reckon a deposit of between £5,000 and £10,000 is enough to buy a home, whereas only 5% of females thought that would be enough. The actual UK first-time buyer deposit mark is £32,321.
A fifth of 18 to 21-year-olds are counting on inheritance to pay off their mortgage, with males far more hopeful of a legacy clearing their mortgage than their female counterparts.
Russell Galley, managing director at Halifax, said: “Despite being one of the most important financial decisions we are likely to ever 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 ten aged 18 to 21 think Stamp Duty is money to pay for stamps – so there is clearly a job for all of us to help kids get a better idea of what’s involved when taking the first step on to the property ladder."
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