"With nearly a quarter of kids and teens already saving to buy their first home, it is vital that they are equipped with the correct money tools to help them meet this ambition"
- Louise Hill - GoHenry
Young people today are feeling optimistic about the property ladder, as new research from GoHenry reveals that 81% of kids and teens want to own a property in the future, with 23% already saving up for this big purchase.
This news comes as recent data revealed that adults today are returning to their family homes to save money, with the proportion of UK adults in their 20s and 30s living with parents rising by over a third over the last two decades.
GoHenry’s Kids’ Eye View of The Property Ladder - indicates that the next generation could reverse this trend. 67% of kids believe buying a home is an achievable goal, with many expecting to own their first property by an average age of 28.
To get on the front foot from an early age, the research shows that young people are eager to learn more about the property ladder at school, with 74% of 6-18-year-olds saying they are interested in learning about topics like mortgages and saving for a deposit.
Young people are looking for independence - and see home ownership as a way to achieve it
According to Gohenry, despite uncertainty over mortgage rates, recent stamp duty changes, and rising house prices, only 5% of young people say they want to rent instead of buying a property.
The data shows that a desire for independence and financial security is fuelling the next generation’s property dreams. For kids who want to buy their own home or property, their top reasons are:
To have their own space and plan for the future (59%)
To live there and avoid renting (42%)
For a long-term investment and financial security (38%)
For a sense of pride (28%)
Because their parent or guardian said it is a good idea (28%)
To rent their property out and become a landlord (10%)
Kids as young as eight are already building up their house deposits
The data shows that kids are already making strides towards owning a home, with 37% of those who have saved money towards buying a property having already saved more than £400 towards this goal. Promisingly, kids seem to have a good grasp of the cost of a home.
According to the report, on average, kids believe the average UK three-bedroom home costs just over £276,000 - which is not far off recent data showing that the average cost of a home is now £296,699.
While 65% of kids and teens believe their parents would help them save for a home, it’s clear that they want to forge their own financial futures. 55% of kids and teens who are saving for the future say they’re already saving their pocket money for that purpose, and, in the past year alone, GoHenry members stashed away 18% of their earnings.
In terms of what kids are saving for, 39% are prioritising owning a property over other saving goals. This is compared to 23% who are saving for university and just 7% for pensions.
Saving for a house deposit is the number one goal for eleven-year-old Ollie: “I love looking at all the different houses for sale in shop windows, but it’s definitely made me realise that I should start saving sooner rather than later if I want to be able to own my own home one day!
“I have been saving any extra money I get from helping around the house into a pot for a house deposit. I’ve already earned over £600, and I think I could even earn £5,000 if I tried really hard.”
Louise Hill, Co-Founder and CEO of GoHenry said: “For many of us, buying our first home is a hugely important milestone and something people dream about well into adulthood. With nearly a quarter of kids and teens already saving to buy their first home, it is vital that they are equipped with the correct money tools to help them meet this ambition.
“Our data shows that young people want to learn more about how to use their money effectively. That’s why we’re calling on the Government to make financial education compulsory in all schools from primary school age - including topics like mortgages and deposits.
"Giving kids and teens these skills from the get-go will be essential if they are to achieve their admirable ambitions of reaching the first rung of the property ladder.”
