First-time buyers are older than ever before and are now hitting their mid-30s before they can afford to climb onto the property ladder.
The average age of a person buying their first home in Ireland has risen to 34 – which is five years older than just a decade ago.
A recent survey by Royal London revealed that 41% of respondents still believed that the ideal age for a first-time buyer was between 25 and 29 years old.
However, in the current housing climate, are these ages merely aspirational?
Proposition Lead at Royal London, Barry McCutcheon commented on their findings,
“As the age of first-time buyers in Ireland continues to get older, it would appear that moving out and buying your first property at the most ‘desirable’ age is beyond reach for most people. As society evolves, family situations and living arrangements change. What would have been once considered the traditional sequence of events, get married, buy a house and then have children, in that order, is becoming less common. A period of renting at some point is usually the case for many individuals nowadays. While the current housing market prices and Central Bank lending restrictions on first time buyers mean that, on average, people have to wait well into their thirties before they can afford their first home.”
The key results from the survey found that 68% of respondents felt that the ideal age to move out of the family home is under 25 years old.
58% agree that the best age to move out was between 20-24 with only 10% agreeing that the best time was 20 years of age or younger.
However, according to the 2018 Eurostat study, the actual average age at which young Irish people now leave the family home is just after they turn 26.
Barry continued, “While one might expect people to believe it’s best to fly the nest as soon as possible, the survey reveals a significant shift in attitudes towards the acceptance of moving out of home at a much later age. 30% of those surveyed thought that being between the ages of 25 – 35 is ideal. It’s likely there are several reasons for this; a primary one may be people trying to avoid paying high rents while allowing them to save up a deposit for a mortgage. Certainly it’s now more acceptable than ever to still be living at home at this age, or indeed having to return to the family home after a period of renting.”
Although the average age of a first-time buyer in Ireland rose from 29 to 34 between 2006 and 2016, 50% of those surveyed believed that in an ideal world, one would have purchased their first property well before that.
Government schemes such as the Help To Buy scheme and the Rebuilding Ireland Home Loan can help first-time buyers to buy or build their dream home.
If you are looking for advice on your mortgage and of course on these schemes, our team of experienced financial advisors in Murray & Spelman (Financial Services) Ltd can help you by providing friendly and clear advice to ensure you get the most competitive and suitable mortgage available.
Request a callback today!
Source: Broker Ireland.