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Nearly half of youth in London plan to have side hustle to raise house deposit

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  • 17/06/2024
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Nearly half of youth in London plan to have side hustle to raise house deposit
Around 48% of 18-24-year-olds in London are planning to take on extra work to save for a house deposit, research has shown.

According to NHG Homes, which surveyed 500 adults in London who were looking to buy their first home, two-fifths said that 18-24-year-olds would be willing to delay having children to buy their first home, which falls to less than a quarter of those aged over 25.

It added that 81% of first-time buyers in London do not have access to a house deposit over £40,000.

This is the 10% deposit figure that you may need to buy an average of a one-bedroom house in the capital. The research added that the average house deposit held by potential buyers is £22,963.

Around one in five of buyers aged 18-34 said they plan to use money from family members that aren’t their parents to help with housing.

A quarter of respondents aged 45-54 said they intend to use inheritance money as a way to raise a house deposit.

Around a quarter of respondents aged 35-44 said they would rely on money from parents to raise a house deposit, and under a quarter of those in relationships said that they also planned to lean on their parents for a house deposit.

Almost half of first-time buyers said they would consider using shared ownership to get onto the property ladder in London.

Almost half said they contact their family for advice on money, which goes up to 69% for 18-24-year-olds.

Social media is also growing in popularity as a source of information for younger generations. A third of 18-24-year-olds use social media, such as Instagram and TikTok.

This falls to 20% of those aged 25-34, 12% for 35-44-year-olds and 7% for those aged 45 and over.

 

Getting on property ladder is ‘a real challenge’

Diana Alam, director of sales and marketing at NHG Homes, said: “Getting on the property ladder in London is a real challenge for first-time buyers, and it’s not surprising to us that many are having to look beyond their main source of income to save the amount needed for a deposit.

“Whether it be getting a second job or asking family members for a helping hand, this research has shown that buying through the open market in the capital requires more than simply setting money aside every month – particularly for younger buyers.”

She continued: “The proportion of first-time buyers that would consider using shared ownership to purchase in London shows just how important it is to offer more affordable routes to homeownership.

“We’re proud at NHG Homes to offer properties across the capital that require deposits as low as four figures, meaning first time-buyers don’t have to choose between staying in London and getting on the property ladder.”

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