01 Nov, 2018/ by Homeward Legal /First Time Buyer
With house prices more than 15 times what they were 40 years, today's millennials are weighing up whether home ownership is something to aim for.
A survey by independent mortgage broker Trussle shows that those in the 18-34 age bracket are three times more likely to move back in with their parents than those from the so-called Generation X.
They are twice as likely to delay having children and more than three times more likely to sell their car compared to the generation before them.
Crucially, home ownership for many millennials is not the driving force it was for their parents and grandparents, in part because soaring prices and suppressed wages are making it harder than ever to afford a place to buy.
Trussle quizzed more than 2,000 people in three age brackets: 18-34-year-olds (millennials), 35-54-year-olds (Gen X) and 55-plus (Baby Boomers).
Asked about their top three life goals, millennials put travelling the world, having children and finding their perfect job ahead of buying a home, which was only fifth on their list of priorities.
Of those millennials who participated in the survey, 21 percent said their No.1 priority as buying a home. For Baby Boomers, that figure is 42 percent and is 36 percent for Gen X.
According to the Trussle research, house prices are almost 15 times as expensive as they were 40 years ago, rising at twice the rate of wages. Since 1978, the average UK house price has risen from £14,236 to £211,000, an increase of a startling 1,382 percent. The average UK salary has risen from £3,269 to £26,500.
Trussle CEO and founder Ishaan Malhi said: "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 40 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."