The average house price in the UK is £226,000. Compare this to the average salary of £27,000 and it’s easy to see why so many young people think that it is impossible to buy a home without a partner. Even when you take into account that the average starter home is £183,000, it is still very difficult.
The research has found that the average first-time buyer household had an income of £50,000 per year, which makes it much easier to save for a deposit and support a mortgage. They also found that the average couple will wait four years before deciding to buy a home together.
A fifth of young couples (22%) move in together as a way of saving money. Many choose to rent together, although 6% move in with one of their parents. The deposit to buy a property is the biggest single outlay and cohabiting couples take various steps together to save up for it. 38% said that they socialised together rather than apart and 19% said they had given up on things such as travelling or a new career due to their financial constraints. One in five said that they argued about financial issues with their partner.
Just over a quarter of young couples aged 18-34 who own their home felt they would only have been able to buy their property with their partner. But it does cause some friction. A third of young coupled homeowners admit they didn’t contribute equally and a fifth admitted this eventually led to tension in the relationship.
Clearly two salaries are better than one when it comes to getting that first step onto the property ladder and more first-time buyers are going down this route. In fact, research last year showed that over the last five years, 63% of first-time buyers are couples. This is a trend backed up by mortgage brokers, with one in three saying the number of joint applications has increased over the previous two years.
If you’re a first-time buyer and want expert help to handle the purchase of your home, please call us.