A new trend is emerging in the UK property market, with an increasing number of Gen Z Brits considering getting a mortgage with a friend to step onto the property ladder, reveals research by Purplebricks Mortgages. The study indicates that 18% of respondents said they are ‘very likely’ to share a mortgage with a friend, while 29% are ‘quite likely’ and 36% would consider it. However, the willingness to share a mortgage with a friend declines as age increases, with less than two-fifths of Brits overall open to the idea.
Data from last year shows that only 0.5% of 16 to 24-year-olds in the UK own their own home, and just one in 10 Brits aged 25 to 34 are homeowners. Jo Pocklington, the managing director of Purplebricks Mortgages, highlighted the lack of legal safeguards in such arrangements, warning that if one friend decides to leave, they can take their capital with them. She emphasised the importance of trust and planning in such joint ventures.
Pocklington suggested that sharing a mortgage could be a viable solution for young professionals struggling to afford a property independently, but she also stressed the importance of considering the uncertainties that come with joint homeownership. While mortgage lenders assess joint applications based on financial responsibility and ability to sustain payments, she reminded potential co-buyers that life changes such as new relationships, job opportunities, or relocations can impact the arrangement.
The average UK property price is reported to be £281,000, with the typical pre-tax salary of a Brit standing at £35,724, according to the latest House Price Index report. As young adults explore novel methods to enter the property market in the face of soaring house prices, experts advise thorough consideration and long-term planning before embarking on joint mortgages with friends.
This news highlights the evolving strategies adopted by the younger demographic to achieve homeownership in a challenging property market landscape.