First-time buyers considering “non-traditional routes” to property

Half of young first-time buyers are willing to consider “non-traditional routes” to get onto the property ladder.

Research suggests that around a quarter of struggling buyers are considering purchasing with a friend or sibling.

Meanwhile, six in ten (62%) under-35s still say they would prefer to purchase their first property with a partner.

The analysis by Lloyds Bank found the most common reason for first-time buyers to consider purchasing with a friend or sibling is to make it more affordable (60%) and because they trust the person (56%), with 14% thinking they would have no other way to buy.

Even traditional reliance on the “bank of mum and dad” to support a first property purchase may be at risk, as half (48%) of young first-time buyers would feel ashamed of borrowing money from family for a deposit compared to just one third (34%) who would feel confident. 

Four in ten (37%) who said they would not consider buying with a friend or sibling said they wouldn’t want to complicate their relationship, and one third (32%) reported that they were unsure how buying in this way would affect potential plans to move out and purchase with a partner in future.

However, there are some perceived barriers to buying with a friend or sibling.

Psychologist and relationship expert Jo Hemmings said:

“Buying with a friend or a sibling is not the same as buying with a partner – there is so much to consider when it comes to the relationship dynamic.

“A lot can change when finances become involved with friendship but, provided you both know how to talk about your finances, these changes can absolutely be positive.”

Amanda Bryden, mortgage director at Lloyds Bank, added:

“While many of us may picture our first property purchase as a home purchase with a partner, this new data shows that more people are open to buying with a friend or sibling than many would expect.

“Buying with a friend or sibling can be appealing because you have probably known this person for a long time, but this new data also shows that people don’t always feel confident broaching financial subjects.

“Just as you should when purchasing with any other person, we would always suggest that you speak with a qualified solicitor about the implications of a shared property purchase, to ease your future progression if you do choose to sell further down the road.

“While a wider variety of options exist for people to purchase their first property, these are only suitable for people if they are able to discuss financial topics openly which is why we are trying to help first-time buyers discuss financial topics.”

Kindly shared by Estate Agent Today