Younger Scots show 'unrelenting' desire to get on property ladder despite cost challenges

Study contradicts perception that younger people ruling out getting on housing ladder.

The challenging economic environment has done little to dent younger Scots’ enthusiasm for getting onto the housing ladder, “far from creating a generation of self-styled Guppys”, (those who are giving up on buying a home), and boding well for the property market’s outlook, according to a new report.

The study by property lender Together found that 71 per cent of the demographic comprising Gen Z (defined as born in about 1996 or after) and millennials (those aged 28-43) in Scotland still hold burning aspirations to pick up the keys to their own property in the next five to ten years, despite the perception that this is out of reach for many of them. Together added that its own customer data shows the number of mortgages provided to first-time buyers in 2023 was up by nearly a tenth on 2022.

However, it also noted that the average UK house price has risen by a “startling” 158 per cent since 1974, when Together started out, while the average age of homeownership for millennials now stands at 34, compared to 27 when the baby boomer generation (those aged 60 to 76) were getting on the ladder. Furthermore, a quarter of baby boomers in Scotland admit they wouldn’t change their priority toward homeownership if they could rewind the clock to when they first had money to invest. However, among the younger generations, 45 per cent said they only wished they had been in a position to buy sooner.

Furthermore, Together said it is interesting that, despite it being far cheaper 50 years ago to access property, older generations (baby boomers and Gen X) were found to be less likely to consider property as an investment vehicle compared to saving-savvy millennials and Gen Z. When asked what they would put their money into if they had £25,000 or more to invest, 48 per cent of the younger generations in Scotland chose property, compared to just 17 per cent of older generations, who view cash savings or ISAs as more appealing (at 31 per cent and 29 per cent respectively).

Additionally, Together said the younger generations looking to own property in the next five to ten years are still, despite stretched budgets, keener to pursue property given the chance of improving its value (45 per cent), and being able to help future generations by passing it on (33 per cent). Both reasons were far less of a concern for older generations.

Alan Davison, director of customer sales at Together, said: “Over the last 50 years, in supporting home-ownership and commercial property ambitions, we’ve seen our fair share of ups and downs in the market. And so, it is encouraging that, while affordability remains a concern, there continues to be a healthy appetite for home-ownership.

“Prices may be high, and many first-time buyers will be hopeful for some inflationary and interest rate relief this year. However, millennials are continuing to see value in property ownership not only as an investment vehicle, but also as a part of their future succession plans, which sheds a positive light on the property market moving forward.”

A separate recent study by Scottish property firm DJ Alexander found that average house prices in Scotland last year rose £7,599 to £190,341.