New research from M&S Bank has found that the majority of millennials would take out a mortgage with two or more people to get a foot on the property ladder.
Due to the difficulties involved with getting on the property ladder, buying with multiple friends or siblings is becoming an increasingly popular option for young, aspiring homeowners.
According to M&S Bank research, 60% of those aged 18-35 said they would consider taking out a mortgage as a group to make home ownership a reality (compared to 26%of people aged over 36).
The M&S Bank study, which surveyed 5,000 people across the UK, found that a fifth (20%) of people aged 18-35 do not believe they will be ever be in a position to own their own home, with a mortgage for up to four being their only option to realise their property dreams. Saving for a deposit was stated as the main barrier, with the majority (59%) of 18-35 year olds having less than £1,000 saved up.
The move towards shared ownership is reflective of the lifestyles of millennials today, many of which have no option other than to rent, according to M&S Bank.
Paul Stokes, Head of Products, M&S Bank, commented: “Many young people are trapped in Generation Rent because house prices seem increasingly out of reach.
For many, home ownership appears possible only through sacrificing certain aspects of their current lifestyle – be that moving to a different area, moving to a smaller property than they’re renting, or seeing their disposable income take a significant hit.
But our research has shown that millennials are keen for an alternative option – and joint home ownership is one of them – from housemate to mortgage-mate is a natural progression which can enable more people to achieve the otherwise unattainable – their dream of property ownership.”
The M&S Bank research found that the most popular companion choice for 18-25s, after living with a partner (58%), is with friends (25%). This was significantly higher than siblings (1%) and colleagues (1%).
A whopping 95% of 18-25 year olds stated there were benefits to living with others, which included having company at home (62%), sharing the financial responsibility of a home (58%), and having someone to cheer you up when you’re feeling down (57%). More than two fifths (41%) even said that having a buddy to binge watch a good box set with is the mark of a good housemate!
Paul Stokes added: “Living with and buying a house with friends or family members alleviates the financial pressure of trying to afford home ownership alone – which is unattainable for many. The option of becoming a mortgage-mate is particularly appealing to those already in a housemate arrangement, and our research shows that the concept has become increasingly popular with millennials.”