Teenage dreams face the reality of home buying
- 83% of teenagers believe they will become home-owners, yet millions of UK adults cannot afford to get on the property ladder
- Over half of teenagers hope to buy their first property aged 23 to 27
Visit www.impartial.co.uk for mortgage advice and to find a mortgage IFA
Growing up forces us to face a lot of hard facts but not being able to get onto the desirable property ladder would be a bitter pill to swallow for many teenagers. Research out today by IFA Promotion, the organisation that promotes independent financial advice, reveals 83% of teenagers are confident they will become homeowners in the future but the stark truth is that 5.8 million British adults claim they simply cannot afford to buy a property.
With the natural optimism of youth three quarters (73%) of teenagers say that owning a property is part of their life plan but only 21% acknowledge the fact that it will be a financial burden. Just 8% of teenagers worry that they might never be able to own a home despite the well documented hurdles facing first time buyers.
The dream of the owning your own home is clearly aspirational as half of teenagers see it as a sign of working hard and being a success, yet without the ability to budget and save, the dream will not become a reality. Over half (56%) of teenagers hope to be able to buy their first property when they are between 23 and 27 years old yet the average age of a first time buyer is 34** so this is another sign of the gulf between the expectations and the reality.
The rose tinted glasses are still firmly in place when asked about their first home as nearly a third (29%) of teenagers think their first property will be a house with a garden. The bank of Mum and Dad isn’t guaranteed to fund this however as 40% of parents have not been able to help their children onto the property ladder because they cannot afford to.
Karen Barrett of IFA Promotion comments: “The British obsession with owning your own home clearly starts young but the unrealistic expectations are coupled with a shocking lack of knowledge about the home buying process. 80% know nothing, or little, about buying a property or mortgages. The need for advice is palpable and arguably it is the first time buyer who would benefit from independent financial advice the most, so we urge first timers to make their mortgage choice a priority and ensure they visit an IFA for advice.”
Borrowers can obtain details of local Mortgage IFAs who focus on advising first time buyers and who also hold incremental mortgage qualifications including MAQ and CeMAP by visiting www.impartial.co.uk. They can also download a free copy of IFA Promotion’s mortgage guide.
*IFA Promotion commissioned a YouGov survey of 2,198 UK adults in August 2006
**ONS statistics
For further information, please contact:
Karen Barrett | Chloe Mann/Holly Godden |
Marketing Director | Lansons Communications |
IFA Promotion | 020 7294 3681/ 020 7294 3674 |
020 7833 3131 |
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For expert comment or case studies from over 100 media-friendly mortgage IFAs, journalists should call IFA Promotion’s Media Services hotline on 020 7294 3682 or search online in ‘Media Services’ at www.impartial.co.uk
1. Independent Financial Adviser Promotion
IFA Promotion was established in 1989 to promote the value and accessibility of independent financial advice to the public. It represents around 9,000 firms of independent financial advisers across the UK and is sponsored by 32 leading financial institutions. In the past 12 months, over 530,000 consumers and businesses used IFA Promotion to find local independent financial advice.
IFA Promotion believes Independent financial advice should be:
Affordable. The option to take independent financial advice should be available, by right, to all - not just the wealthiest in society.
Convenient. IFAs should be available in the location of the consumer’s choice, wherever they live in the UK.
Transparent. It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.
2. Independent Financial Adviser Promotion’s sponsors
Aberdeen Asset Management | Mortgage Express |
Abbey | National Savings & Investments |
AXA Life | NatWest Business Banking |
Bright Grey | New Star Investment Funds |
BUPA Health Services | Norwich Union Life |
Canada Life Ltd | Prudential |
The Children’s Mutual | Scottish Equitable Plc |
Clerical Medical Investment | Scottish Life |
Defaqto | Scottish Life International |
Friends Provident | Scottish Widows Plc |
GE Life | Skandia UK Group |
GMAC Residential Funding | Standard Life Assurance Company |
INVESCO Fund Managers Ltd | Unum Provident |
Legal & General | Webline Limited |
London Mortgage Company | Zurich Intermediary Group |
Lincoln Financial Group |
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