One in seven young Britons (14%) say they would buy a home with a stranger in a bid to get on the property ladder, according to nationwide research.
A new study of 2,000 Brits (aged 18 – 40) by HSBC has revealed the true extent to which buying a property now feels increasingly out of reach for the younger generation, with 83% claiming they may never be able to afford to buy their own property.
According to the report, 80% would co-own a property with someone who is not their partner, with a further 59% saying they’re at least “open to the idea” of buying with a stranger – if they ticked all the right boxes.
4% said they would be prepared to move in with “someone they met in the pub”, while just under one in twenty would even consider buying with an ex.
“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,” said HSBC mortgages expert Chris Pearson. “That’s why we’ve run this research on the perfect homebuying partner and are holding Home Bae, the UK’s first-ever speed dating event for co-buyers.”
When asked why they’d buy a property with someone other than their partner, 33% of Brits said it is because they simply can’t save up enough money for a deposit on their own. Twenty-seven% said their annual salary would not get them a big enough mortgage to buy a property where they would like to live, while 25% said it would be nice to split the bills with someone else and nine% said they will rent out a room to help with the mortgage.
“Buying a home is a life-changing financial commitment and there’s no doubt this is an unorthodox way of doing it,” added Pearson. “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.”
Focusing on the check list of what’s really important to you is essential, according to relationship coach Sam Owen, who said, “The quality of our relationships is more important than how many friends we have or whether we have a romantic partner.
“Even one good person in your life, like a ‘house-partner’ you buy a home with, could be a lifeline, especially in a world with increasing physical and sometimes even psychological distance between us. It’s a partnership so you’ll want to make sure there aren’t any deal-breakers and they really tick your boxes.”
The study is part of HSBC’s annual Beyond the Bricks campaign which looks at home-buying habits and attitudes across the world.