The news comes as today’s first-time buyers increasingly turn to their friends for a leg-up on to the property ladder. The HSBC research revealed:
- 93 per cent of potential first-time buyers believe affordability is a problem
- 57 per cent of potential first-time buyers would buy a property with friends
Buying a property with friends proved most popular with first-time buyers who are still living at home with parents; nearly three-quarters (73 per cent) said they would consider sharing with as many as three other people to purchase a place of their own.
Despite the continued rise in property prices, first-time buyers are as determined as ever to get on the ladder. Home ownership remains the preferred choice over renting and property is still viewed as an excellent investment by first-time buyers. When asked the primary reason driving their desire to purchase a home:
- 27 per cent want to stop wasting money on rent
- 20 per cent aspire to the independence that home ownership brings
- 19 per cent want to get on the first rung before property prices rise even more
- 14 per cent want to buy property as an investment
- 12 per cent crave the sense of achievement that home ownership brings
Carina Kemp, head of mortgages at HSBC, said: “The average house price in England and Wales now stands at almost £200,000, which is over six times the average salary, but home ownership is as popular as ever so first-time buyers are thinking more laterally about how to get on the ladder.
“At HSBC we have seen a 50 per cent increase in group mortgage applications this year alone. More and more people are getting round high property prices by clubbing together with friends or family to buy a home and this is a trend which we expect to continue.
“If you’re itching to get on the property ladder but prices look out of reach, banding together can strengthen your buying potential and make that first home affordable. However, before you take the plunge, it is essential to know and trust your co-owners and to have drawn up a contingency plan for when circumstances change. A good safeguard is to draw up a legal agreement, before the purchase is completed, to cover eventualities such as what happens if one person decides to move out or falls on hard times.”
