Seven in 10 (69%) millennials remain defiant over their homeownership plans for the next five to 10 years despite rising house prices, research by Together has indicated.

The property lending firm revealed that the average age of homeownership for millennials (aged 28-43) now stands seven years higher than when the baby boomer generation (aged 60-76) were getting on the ladder, with each standing at 34 and 27 years old respectively.

Together also stated that over the past 50 years, the average UK house price has risen by 158% as a result of inflation.

Despite this increase in prices, the study by Together found that 69% of millennials still hold out hope for buying their first home in the next five to 10 years, as the number of mortgages provided to first-time buyers increased by 9% between 2022 and 2023.

Furthermore, despite it being far cheaper to access property 50 years ago, those who first bought a house in the 1970s are less likely to consider property as an investment vehicle, compared to millennials.

When asked what they would put their money into if they had £25,000 or more to invest, over half (52%) of millennials chose property, compared to 17% of baby boomers, who view cash savings or ISAs more appealing at 30% and 28% respectively.

Even with more constraints on their short and long-term finances, millennials looking to own property in the next five to 10 years are more likely to pursue property given the chance of improving its value (41%) and being able to help future generations (who may face an even tougher economic climate) by passing it on (37%).

Both reasons which were far less of a concern for baby boomers – despite growing trends in family members having to financially support younger generations today.

Director of customer sales at Together, Alan Davison, said: "Over the last 50 years, in supporting the homeownership and commercial property ambitions of the UK, we’ve seen our fair share of ups and downs in the market. While less volatile, first-time buyers in the early 1970s faced high prices before a dramatic drop in the economy took hold in 1974. And so, it is encouraging that, while affordability remains a concern, there continues to be a healthy appetite for homeownership.

"Our research proves young people’s unrelenting desire to open doors to new properties, whether that’s to create family memories or develop exciting new projects for wider public use. Prices may be high, and many first-time buyers will be hopeful for some inflationary and interest rate relief this year.

"However, millennials are continuing to see value in property ownership not only an investment vehicle, but also as a part of their future succession plans, which sheds a positive light on the property market moving forward."

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