How is my generation ever to afford home ownership?

Let’s cut to the chase. Gen Z and Millennials, the idea of owning a home feels like some far-off, mythical land. Rising house prices? Check. Stagnant wages? Double check. But before you give up and settle for a lifetime of renting and dodgy landlords, here’s the thing: It’s not impossible. Sure, it’s tricky, but with a little hustle, smart saving, and some clever hacks, homeownership is totally doable. So, grab your metaphorical hammer and let’s get ready to crack open the housing market!

 

The Reality Check

We all know the story: UK house prices are off the charts, especially in cities like London, where buying a house can feel like trying to catch a unicorn. With average house prices hitting £286,000 (and closer to £525,000 in London!), it’s no wonder you’re feeling dazed. But hey, it’s not all doom and gloom. You might not buy a mansion next year, but with some smart moves, that front door key could still be in your hand.

 

1. Supercharge Your Savings

Saving for a deposit can feel like watching paint dry, but there are ways to turbocharge the process:

• Open a Lifetime ISA (LISA): This is like free money for your future home. For every £4,000 you save, the government gives you a bonus of £1,000. It’s basically saying, “Hey, here’s some extra cash because we believe in you!”

• Go on Autopilot: Set up automatic transfers to your savings. Whether it's £50 or £200 a month, make it a habit, and watch your deposit grow.

• Use Smart Budgeting Apps: Apps like Plum or Money Dashboard help you track spending and identify areas where you can save. You might be surprised how much those coffees are adding up!

• Cut the Extras: Netflix and Amazon Prime and Disney+? Maybe it’s time to downsize your subscriptions. Every little helps, and cutting out non-essentials can give your savings a boost.

 

** 2. Look Beyond London**

Buying a house in central London is like trying to get front-row tickets to Glastonbury—it’s a long shot. But don’t panic! The UK is full of affordable areas where homeownership is within reach:

• Commuter Towns Are Your Friend: Places like Reading, Slough, and Luton give you easy access to London but without the sky-high prices.

• Smaller Cities, Big Opportunities: Cities like Manchester, Birmingham, and Leeds have booming job markets and way more affordable houses. Plus, the nightlife is just as good!

 

3. Take Advantage of Government Schemes

The UK government wants to help you buy your first home—seriously. Here are some schemes you should check out:

• Help to Buy: Shared Ownership: This allows you to buy a portion of a house (25%-75%) and pay rent on the rest. It’s a great way to get a foot on the property ladder without needing a huge deposit.

• First Homes Scheme: This is like getting a discount on your dream home. You can buy a property for 30%-50% less than market value if you meet the criteria. Cha-ching!

 

4. Boost Your Borrowing Power

Want the bank to give you more money? Here’s how you can make that happen:

• Improve Your Credit Score: Treat your credit score like your social media feed—keep it looking good. Pay off any debt, avoid late payments, and don’t go wild with new credit cards before applying for a mortgage.

• Cut Down Your Debt: The less you owe, the more you can borrow. Simple maths. Pay off those pesky credit cards before talking to the bank.

• Get a Mortgage Agreement in Principle: This gives you a clear idea of what you can afford and shows sellers you’re a serious buyer. You’ve got your finances sorted—now it’s time to shop for that house!

 

5. Think Outside the (House-Shaped) Box

Not every path to homeownership is traditional. Get creative with these options:

• Co-Buy with Friends or Family: Imagine splitting the cost of a home with your best mate or sibling. You get more house for less money—and a built-in housemate! Just make sure to get a legal agreement in place.

• Rent-to-Buy: Rent now, buy later. Companies like Keyzy and some housing associations offer this option, where part of your rent goes toward buying the home in a few years.

• Fixer-Uppers Are Underrated: Buy a house that needs some love and fix it up yourself. Not only can you snag it for less, but you can make it totally yours in the process.

 

6. Keep It Real

Your first home might not be your dream home, but it’s a start. If that means buying a one-bed flat instead of a three-bed house, so be it. The key is getting on the ladder now , because once you’re in, it’s easier to upgrade later.

 

The Overall Solution

Let’s face it, buying a home isn’t as easy as it was for our parents. But guess what? It’s totally within reach with the right tools. Apps like Klink make the home-buying journey faster and easier by helping you set your home goals, discover your borrowing power, and see what you can afford today. Plus, Klink shows you how to boost your savings so you can buy your home even quicker

Keep your eye on the prize, and don’t let the daunting headlines scare you off. Homeownership is a marathon, not a sprint—but every step you take gets you closer to the finish line.