Boomers help Millennials buy homes in a tough market

A new study shows that the UK’s passion for homeownership remains strong and that baby boomers are playing a vital role in helping millennials get on the ladder.

The property lender Together says the property market has become much harder to enter for first-time buyers over the past 50 years, with average prices soaring by 158% after inflation.

Millennials (those aged 28-43) now buy their first homes at 34, almost a decade later than baby boomers (aged 60-76) did.

‘When I was your age, I’d already bought a house’

Together’s director of customer sales, Alan Davison, said: “‘When I was your age, I’d already bought a house’ is a common refrain that millennials hear from their parents, relatives or older colleagues, who bought their first properties when prices were much lower, and the market was more accessible.

“For the baby boomer generation, there is little need for regret.

“They bought when the conditions were favourable and have seen their wealth grow.”

He added: “But for millennial first-time buyers, the situation is very different. They face a tough market with high inflation and interest rate uncertainty.”

Baby boomers advise millennials to ‘get on the ladder’

The research by Together found that nearly half (49%) of baby boomers advise millennials to ‘get on the ladder as young as possible’, and that they are often involved in helping them do so.

A fifth (20%) of millennials had to ask their family for the deposit for their first house, compared to just 11% of baby boomers.

Also, a fifth of millennials (20%) moved back in with their parents to save for a deposit, while only 4% of baby boomers did the same.

Millennials who have bought their first homes

Among the 19% of millennials who have bought their first homes, they advise other first-time buyers to ‘hold onto their property and pass it onto younger generations’.

A remarkable 60% of millennials plan to buy their first homes in the next 5-10 years.

Together’s data shows that the number of mortgages they provided to first-time buyers in 2023 was about 9% higher than in 2022.

‘Average house price has shot up from £8,915 to £284,950’

Mr Davison said: “Since 1974, when Together’s founder first lent on a property mortgage, the average house price has shot up from £8,915 to £284,950.

“Even when adjusted due to inflation, that equates to a startling rise of 158%.

“That’s why we see baby boomers doing what they can to help millennials get on and stay on the ladder.”

He added: “Many millennials also want to buy their first homes with the intention of passing them on to future generations.”

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