Generation Z needs better education when it comes to buying a home
A third of young people aged 11 to 14 are banking on mum and dad to cough up the cash for their first home, according to Halifax.
And more than one in five of their 18 to 21-year-old counterparts (21%) are relying on the government to help them on to the property ladder.
The UK’s next generation of first-time buyers is facing some home truths about getting on the property ladder, said the lender, with one in five 11 to 14-year-olds expecting to borrow as much money as they want to buy a house.
Future first-time buyers have high hopes of becoming homeowners, but they don’t always have a realistic idea of the cost of buying a property.
One in five 11-21-year-olds in London reckon they can snap up a home from as little as £50k up to £200k – when the average first-time buyer house price in London is actually £422,580.
Over a quarter (27%) those aged 18 to 21 believe they’ll be homeowners by the time they are 25, when the average age is 30 (or 32 in London).
However, another quarter (23%) of 15 to 17-year-olds believe that only rich people own their own homes.
Russell Galley, managing director of Halifax, said: “Despite being one of the most important financial decisions we’re ever likely to make, becoming a homeowner feels like a mystery for Generation Z who will soon be thinking about flying the nest.
“Although our research found that the vast majority of 11 to 14-year-olds understand what a mortgage is, one in 10 aged 18 to 21 think Stamp Duty is money to pay for stamps – so there’s clearly a job for all of us to help kids get a better idea of what’s involved with taking the first step on to the property ladder.”