One in seven younger Britons would buy a house with a total stranger to get on the property ladder, as the vast majority fear they will never get the chance to buy their own home.
With 83 per cent of 18 to 40 year-olds positive they will never be afford a home on their own, 14 per cent said they would buy with someone they did not know personally. A smaller 4 per cent said they would buy a home with a ‘mate from the pub’, while one in 20 would even consider buying a home with a former partner.
Eighty per cent said they would be willing to co-own and share a property with someone who was not their partner if it meant they could get on the housing ladder.
What could possibly go wrong? One in seven would buy a home with a total stranger
Three-quarters of younger Britons said they wanted to buy a house to live in, rather than as a buy-to-let opportunity, HSBC’s latest findings reveal.
While the number of first time buyers reached a 10-year high last year, cheap mortgage deals are rapidly disappearing.
The era of ultra-low interest rates is on the way out, with banks and building societies axing the best deals ahead of interest rate hikes expected later this year.
Interest rates are currently being held at 0.5 per cent, but could be increased by 0.25 per cent as early as May.
WHAT MAKES A GOOD HOUSEMATE ACCORDING TO BRITONS?
1. Pays the bills on time – 80%
2. Is clean and tidy – 70%
3. Keeps the bathroom clean – 56%
4. Does NOT have body odour – 51%
5. Is open to compromise – 48%
6. Is calm under pressure – 42%
7. Can do DIY – 39%
8. Has savings in the bank – 38%
9. Loves pets – 37%
10. Is fun loving – 36%
11. Does not play loud music – 35%
12. Has a good credit rating – 31%
13. Is a good listener – 28%
14. Keeps the fridge well stocked – 26%
15. Is a meat-eater – 24%
16. Does NOT talk too much about themselves – 23%
17. Lets you borrow their things – 23%
18. Will deal with all the household admin – 22%
19. Lends you books and movies – 20%
20. Loves a good BBC drama – 19%
21. Has monthly savings targets – 19%
22. Earns over 50k a year – 18%
23. Cooks a cracking roast – 18%
24. Does a “chemist run” when you’re ill – 17%
25. Likes to be in bed by 11pm – 17%
26. Has a Netflix account – 16%
27. Has a family holiday home somewhere warm and sunny – 16%
28. Does not snore – 16%
29. Owns a car – 15%
30. Is stylish – 13%
The issue of first-time buyers is a hot political potato which prompted the introduction of a string of schemes like Help to Buy Isas, but with sluggish wage growth and paltry savings rates, many continue to struggle to get on the ladder.
For many younger people, the prospect of even shopping around for a mortgage deal is a distant dream, with nearly 70 per cent saying they do not have sufficient funds for a deposit, HSBC said.
Those who do end up buying a property with a near or total stranger have a hefty list of demands when it comes to what sort of person makes a decent housemate.
Unsurprisingly, 80 per cent said the best trait a housemate could have would be one who pays bills on time.
Other popular traits include being clean and tidy, keeping the bathroom tidy, not having body odour and be willing to compromise.
Eighteen per cent want their housemate to be earning £50,000 or more a year, while 31 per cent want them to have a good credit rating.
Curiously, 13 per cent said the most important trait for a housemate would be that they were stylish, while 24 per cent insist they are meat eaters.
Chris Pearson, a mortgage expert at HSBC, said: ‘We understand the challenges that young buyers are facing today and that they are willing to think outside the box to get on the property ladder – even contemplating the idea of buying with a stranger.
‘Buying a home is a life-changing financial commitment and there’s no doubt this is an unorthodox way of doing it.
‘People who are considering this step need to not only find someone responsible and compatible – they also need to dot every “I” and cross every “T” to avoid a difficult situation in the future, especially when it comes to selling.
‘It’s important to have a clear agreement in place from day one so you both know what’s expected of you.’
Relationship coach Sam Owen said anyone on the lookout for a stranger ‘house partner’ should ‘make sure there aren’t any deal breakers and check they really tick your boxes.’
Last year, there were 365,000 first-time buyers across the UK, which is the highest since 2006 and marks an annual increase of 7.4 per cent from 340,000 in 2016.
On the rise: Last year, there were 365,000 first-time buyers, which is the highest since 2006
Why not? Four per cent of people under 40 said they would buy a home with a ‘mate from the pub’
Official data from the Office for National Statistics published on Tuesday revealed that house prices across the country increased by 5.2 per cent to an average of £227,000 in the year to December.
The annual growth rate has slowed since mid-2016 but hovered around the 5 per cent mark throughout last year.
In England, prices rose by 5 per cent, with the average cost of a home at £244,000, while in Wales prices increased by 5.4 per cent to an average of £154,000.
Across Scotland, average prices jumped by 7.7 per cent to around £149,000. while in Northern Ireland prices climbed 4.3 per cent to an average of £130,000.
As has been the case for many years, London’s housing market remains out of reach for many, particularly those in the first-time buyer category, with average prices at £484,000.
In the London borough of Kensington and Chelsea, properties typically cost around £1.2million. By contrast in Burnley, Lancashire, the average cost of a home is £78,000.
Prices: The average cost of a home across the UK is £227,000 recent ONS data shows