Half of first-time buyers are ditching the traditional route of buying with a partner and are instead teaming up with friends or family members to get on the property ladder.
A whopping 51% of young people are considering “non-traditional routes” like buying with a friend (24%) or sibling (22%) because it’s cheaper and they trust the other person, according to new research from Lloyds Bank.
While buying with a romantic partner is still the preferred choice for 62% of under-35s, the sky-high cost of living is pushing people to think outside the box.
This trend is being dubbed “co-buying” and it’s taking the housing market by storm!
Bank of Mum and Dad Runs Dry
It’s not just buying with a partner that’s losing its shine – even the Bank of Mum and Dad is under threat. A staggering 48% of young people would feel ashamed to borrow money from family for a deposit.
This means a huge chunk of young people are left feeling like they have no choice but to team up with friends or siblings.
Relationship Expert’s Top Tips for Co-Buying
Psychologist and relationship expert Jo Hemmings says, “Buying with a friend or a sibling is a whole different ball game than buying with a partner. When you throw money into the mix, things can get complicated, but if you can talk openly about your finances, it can be a positive experience.”
Here are Jo’s top tips for avoiding disaster when co-buying:
- Talk About the Big Stuff (and the Small Stuff!) Before you even think about browsing Rightmove, have a serious chat about your finances, future plans, and those little everyday habits that could drive you crazy under the same roof. Are you a clean freak? Do you love blasting music at all hours? It’s all got to be on the table!
- Get Legal! It might feel weird, but drawing up a legal agreement is crucial. This document will outline each person’s share of the property and protect you from any nasty surprises down the line.
- Find Your Dream Home (Together!) This is a joint decision, so talk about what type of property you want, the location, and how long you plan on living there.
- Don’t Bottle Things Up! Disagreements are bound to happen. Address any issues head-on and don’t let resentment fester.
- Plan for the Future! Life throws curveballs, so discuss what happens if one of you wants to sell, move out, or if a new partner enters the picture.
Co-Buying – A Recipe for Disaster or a Dream Come True?
While co-buying can be a great way to get on the property ladder, 37% of people worry it could complicate their relationship, and 32% are unsure how it would affect their plans to buy with a partner in the future.
Amanda Bryden, Mortgage Director at Lloyds Bank, says, “It’s great to see more people exploring different ways to buy their first home, but it’s crucial to have open and honest conversations about money.”
So, if you’re thinking of teaming up with a pal to buy a property, make sure you talk about the nitty-gritty before taking the plunge!