this post was submitted on 25 Jul 2023
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One in four new UK homebuyers under 25 rely on ‘bank of mum and dad’ – study (www.theguardian.com)
submitted 1 year ago by Ninmi@sopuli.xyz to c/europe@feddit.de
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[–] theinspectorst@kbin.social 2 points 1 year ago (2 children)

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.

[–] tal@kbin.social 2 points 1 year ago (1 children)

The average UK house price is around £300k

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?

How much deposit do I need for a £300,000 house in the UK?

For a £300,000 house in the UK, you will likely need a minimum deposit of £15,000.

Then consider that the people buying the thing may have married and both have been working.

[–] theinspectorst@kbin.social 1 points 1 year ago* (last edited 1 year ago)

So, it's pretty common to get a mortgage when buying a house rather then purchasing cash up front.

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?

[–] Ravi@feddit.de 1 points 1 year ago

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).