It appears that the next generation of homebuyers in the UK are in for a bit of a surprise when it’s time for them to leave the nest.
A recent survey from Halifax questioned people aged 11-21 on the processes involved and just how much it costs to buy a home, with surprising and occasionally humorous responses.
Collecting response from over 1,000 participants, it appears that “becoming a homeowner feels like a mystery for Generation Z” according to Managing Director of Halifax, Russell Galley.
When asked how they planned to buy a home a third of children aged 11-14 said that their parents would simply give them the cash to do so, while just over one-fifth of 18-21 year olds believe that the government would help them into a home.
The price tag of a property is going to be quite a shock to some as 20% of respondents believe it only takes £50,000 to £200,000 to purchase a home in London, which is a slight underestimation of the actual average price for first-time buyers in the capital, where homes cost £422,580.
While their estimations on price may be a lot lower than reality, this should not be a problem, however, as one in five believe that they can borrow an unlimited amount of money from a bank in order to finance the purchase.
Before borrowing the rest of the money to get them across the line, it appears they will still be waiting some time before they have enough for a deposit, as 25% of 15-17 year olds expect it will take them 20 years to save up for a deposit.
According to Russell Galley, most participants did have a good understanding of the process, but there is still some more educating that needs to take place. Galley said “Although our research found that the vast majority of 11 to 14-year-olds understand what a mortgage is, one in 10 aged 18 to 21 think stamp duty is money to pay for stamps – so there’s clearly a job for all of us to help kids get a better idea of what’s involved with taking the first step on to the property ladder.”
