A fifth (20%) of millennials are relying on their baby boomer parents to supply first home deposits versus just 11% of their parents when they were young
New research from Together shows that ‘boomer’ parents are forced to take charge to get millennials onto the ladder amid record-high prices.
The data also reveals that a fifth of millennials (20%) had to move back in with parents to help save for a deposit – compared to just 4% of baby boomers when they were young.
Over half (52%) of baby boomers admit they don’t have any property regrets given the notably easier and cheaper task of getting on the ladder 50 years ago.
Over the past 50 years, the average UK price has risen by 158% (even when accounting for inflation), meaning today’s first-time buyers are facing far more challenges than any generation before.
The average age of homeownership for millennials (those aged 28-43) now stands at almost ten years higher (34 years old vs 27 years old) than when the baby boomer generation (those aged 60-76) were getting on the ladder.
Among the 19% of millennials who’ve managed to get on the ladder, they advise other FTB’s to ‘hold onto their property and pass it onto younger generations’ – with an impressive 60% of millennials aiming to purchase first homes within the next 5-10 years.
Indeed, Together’s own customer data shows that the number of mortgages provided to first time buyers in 2023 was about 9% more than in 2022.
Together’s director of customer sales Alan Davison said: “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 onto the property ladder”.
He added: “Since 1974, when Together’s founder first lent on a property mortgage, 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%.
“With this cost pressure front of mind, we’re seeing first time buyers of the 1970’s do what they can to help today’s first-time buyers get on and then cling to the ladder. Indeed, many of today’s first time buyers aim to do so with a key priority of ownership being to pass down this valuable asset to future generations.”
