Desperate first-time buyers are increasingly clubbing together to get the financial clout to get onto the property ladder, claims a new HSBC report.
Some 57 per cent of prospective first-time buyers say that they are considering buying property with friends or family in order to bridge the affordability gap.
Within these potential buyers, 73 per cent said that they would consider splitting the cost of a home up to four ways if they bought property with friends.
More than nine in every ten – 93 per cent – said that affordability is a problem, but this is not enough to discourage almost 80 per cent from wanting to be homeowners.
“The average house price in England and Wales now stands at almost £200,000, which is over six times the average salary,” said HSBC head of mortgages Carina Kemp.
“But home ownership is as popular as ever so first-time buyers are thinking more laterally about how to get on the ladder.”
The number of people applying to HSBC to buy property with friends and family has leapt by a half in recent years.
Ms Kemp noted that finding the best mortgage rate over the long term could have almost as much effect on affordability as splitting the costs, however.
This article: © Moneyexpert Ltd.