British youth want homes overseas

Wednesday, 11 January 2006 12:00

The vast majority of 16 to 21-year-olds would like to own their own home one day, although many of them would like to do so overseas.

That is the according to new research from UCB Home Loans, the specialist lender of Nationwide.

And despite record property prices, two British youths in three believe they will buy their first house between the ages 25 and 30.

But there could be disappointment further down the line.

"Statistics currently show that approximately 70 per cent of the UK population own their own homes," said Keith Astill, UCB Home Loans managing director.

"Whilst 92 per cent of the young people interviewed want to own their own home when they are older, it is likely that some of them will never actually make it."

However, there is better news for the 31 per cent of British youths that would like to move abroad one day.

The Office of National Statistics shows that in 2004 alone, the last year we have statistics available for, 208,000 British people moved abroad.

But the nation's 16 to 21-year-olds will have to wait longer than they think to get on the housing ladder.

"The age at which people make their first purchase of a property has also been rising over recent years, and a large proportion of those who are hoping to buy their first property by the age of 27 will not be in a position to do so," Mr Ashe said. "Latest figures from the Council of Mortgage Lenders show that the average age of a first-time buyer is now 34."

And accelerating house prices are largely responsible for this delay.

"Almost half of those questioned think their first purchase will cost under £150,000," Mr Ashe explained.

"Nationwide's December housing review shows that the average UK house price currently stands at £157,250 and the average price for first-time buyers is £128,105.

"Assuming that the majority of sixteen year-olds will not make their first property purchase for another 15 years or so, by which time prices are likely to have increased significantly, it is likely that many of them will need to pay more than they currently expect.

"Fifteen years ago, the average UK house price was just £54,313 some £102,937 lower than it is today."

To find a cheap UK mortgage, go to www.myfinances.co.uk/mortgages.htm

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