25% of single people believe it will be impossible to buy their own home without a partner, according to the new research from Post Office Money Mortgages.
Of home owning young couples (aged 18-34), 27% feel they would have only have been able to buy a home together.
On average, half of young couples living together are renters, while half jointly own a home (45 & 44%). A large number of couples are motivated by practical reasons when taking this step, with 22% admitting they made their initial move in order to save money. Young couples (aged between 18 and 34) will spend four years together on average before deciding to buy a home.
With the average price of a starter home for a first time buyer increasing by 7% (£12,785) over the last year to £183,385, the average earnings of a first time buyer household in the UK is £50,000 – nearly double the average annual salary of a single person (£27,274). However, despite joining their finances in order to get into their first home, 34% of young coupled homeowners admit they didn’t contribute equally and for some this eventually led to tension in the relationship (20%).
Owen Woodley, managing director of Post Office Money, said: “It’s natural that once couples get serious they want to start building a life together, particularly when they see the potential of their shared income. However, saving towards the purchase of a home can be understandably daunting and the joint effort to reduce your shared cost of living and boost your savings can sometimes lead to friction in a relationship. In order to make the process less daunting, couples could benefit from marking their significant ‘savings milestones’ with fun, frugal celebrations.
“As a provider that works with a large number of first-time buyers, Post Office Money Mortgages knows that saving towards a deposit can be a stressful time. As such, we have introduced a new range of fee-free mortgages which only require a five% deposit, so the prospect of homeownership feels like a more achievable goal.”
Cohabiting couples looking to buy together have also taken other steps in order to save money as they try to get on the ladder, such as mostly socialising together rather than separately (38%). 19% have even given up on a personal ambition, such as travel plans or a new career, due to their joint financial situation. 22% of couples aspiring to buy admitted that they argued about their household budget as they put money away for their new home.
6% of young couples chooses to live with one of their parents. While 29% felt the decreased rent relieved stress while they were saving they admitted the situation lacked privacy (31%) and led to their parents scrutinizing their finances more (14%).
For parents, even at the point where they do manage to finally empty their nest, 19% of young homeowners will still rely on them to pay the majority of their deposit.