35
One in four new UK homebuyers under 25 rely on ‘bank of mum and dad’ – study
(www.theguardian.com)
this post was submitted on 25 Jul 2023
35 points (97.3% liked)
Europe
8324 readers
3 users here now
News/Interesting Stories/Beautiful Pictures from Europe 🇪🇺
(Current banner: Thunder mountain, Germany, 🇩🇪 ) Feel free to post submissions for banner pictures
Rules
(This list is obviously incomplete, but it will get expanded when necessary)
- Be nice to each other (e.g. No direct insults against each other);
- No racism, antisemitism, dehumanisation of minorities or glorification of National Socialism allowed;
- No posts linking to mis-information funded by foreign states or billionaires.
Also check out !yurop@lemm.ee
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Seems to be a paradise for young people in the UK lol
i'm really suprised too. Noone in Germany under 25 could get a loan for a house without their family assisting or a large inheritance.
I mean maybe there is some fringe cases of some remote working programmers that can afford a house in a village with the next supermarket being 20 mins by car and the next hospital being 45 mins.
I know right. However this may also be related to different home owner rates in different countries. Germany is at the lower end with about 49.5% (2021), UK in the middle with 65.2% (2018). But I'm not really an expert in that field as owning property is far away from my life.
Might also be related to the different kinds of houses built in different countries and their different price points.
Unaffordable prices probably cause low home owner rates so that would be the most likely relation.
Under-25s in the UK are not buying houses. The sample size on that statistic must be so tiny as to make it an irrelevant statistic.
The average UK house price is around £300k (or in London, where higher-paying jobs like finance night exist, the average house price is £500k). For an under-25 year old to be buying a house without significant parental support means they'd have to be on a crazy salary. This is footballers and pop stars buying houses.
So, it's pretty common to get a mortgage when buying a house rather then purchasing cash up front.
https://www.mpamag.com/uk/mortgage-industry/guides/down-payment-on-a-house-in-the-uk-what-you-need-to-know/435518#How%20much%20deposit%20do%20I%20need%20for%20a%20%C2%A3300,000%20house%20in%20the%20UK?
Then consider that the people buying the thing may have married and both have been working.
It's pretty common to not be able to borrow more than 4x your income and to need to put down a 10% (or more) deposit if you want a half decent rate. Do you know a lot of under-25s who have £30k in self-made savings (not family wealth) and earning salaries of £68k a year to be able to qualify for a £270k mortgage?
Sounds like a price you can dream of compared to Germany. Good luck finding anything below 750k € in a major city (750k + 100k to fix the house).