Millennials, aged between 18 and 34, are having to make sacrifices that were previously unheard of in previous generations to get onto the property ladder, according to a new study conducted by online mortgage broker Trussle.
When asked about the compromises they had to make in order to purchase their first home, one in five millennials had to move back in with their parents, compared to just 55% of generation X (aged 35 to 54), while a further one in five had to take a second job.
Furthermore, the study found that millennials are more than twice as likely to put off romantic relationships, twice as likely to delay having children, and 3.5 times as likely to sell their car, compared to the generation before them.
The findings from Trussle illustrate the impact of soaring house prices and slow wage growth on first time buyers.
Analysis from the online broker revealed that house prices are almost 15 times more expensive than they were 40 years ago, rising almost twice as fast as wages. Since 1978, the average price for a house has increased exponentially by 1,382%, rising from £14,236 to £211,000. In comparison, the average annual UK salary has risen from £3,269 to just £26,500.
Many young people feel that the dream of home ownership is unachievable and have therefore not listed it as a top life goal. When questioned, 27% of millennials cited travelling the world as their top priority, followed by having children (24%) and finding the perfect job (24%). Buying a home ranked fifth, with 21% of younger people listing it as a top life goal. In comparison, buying a first home was the biggest life goal for both generation X (36%) and baby boomers (42%).
Commenting on the findings, 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 forty 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.”
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