Tenants consider co-buying with friends or family members, says bank

Some 51% of young first-time buyers are willing to consider so-called ‘non-traditional routes’ to move out of renting and onto the property ladder – like purchasing with a friend or sibling.

While 62% of under-35s responding to the Lloyds Bank survey still say they would prefer to purchase their first property with a partner, many are now looking to alternative routes into home ownership.

The most common reason for first-time buyers to consider purchasing with a friend or sibling is to make it more affordable (60%) and because they trust the person (56%), with 14% thinking they would have no other way to buy. However there are some perceived barriers to buying with a friend or sibling.

Even traditional reliance on parents to support a first property purchase may be at risk, as half (48%) of young first-time buyers would feel ashamed of borrowing money from family for a deposit compared to just one third (34%) who would feel confident. 

Young people are pioneering this new trend towards non-traditional ways of buying, with one third (32%) of 18 to 34-year-olds who have yet to buy a property reporting that they “don’t care how” they buy a home as long as [they] get onto the property ladder.

Amanda Bryden, mortgage director at Lloyds Bank, says: “While many of us may picture our first property purchase as a home purchase with a partner, this new data shows that more people are open to buying with a friend or sibling than many would expect.

“Buying with a friend or sibling can be appealing because you have probably known this person for a long time, but this new data also shows that people don’t always feel confident broaching financial subjects.

“Just as you should when purchasing with any other person, we would always suggest that you speak with a qualified solicitor about the implications of a shared property purchase, to ease your future progression if you do choose to sell further down the road.

“While a wider variety of options exist for people to purchase their first property, these are only suitable for people if they are able to discuss financial topics openly which is why we are trying to help first-time buyers discuss financial topics”.