Average age of a first time buyer will reach 41
The average age of a first-time buyer will be 41 years by the year 2025, up from today’s average age of 38.
The results from LV='s Delayed Lifestyle report show a big leap from the 1980s when people bought their first house at 29 years old.
With the majority taking a mortgage for a term of 25 years or more, this delay is likely to have a significant impact on people being able to pay their mortgage off before reaching retirement.
In fact, according to the report, Britain suffers from ‘Peter Pan' syndrome as 16 million people say they have delayed at least one major life step including marriage, having a baby or buying a home.
The report shows the average age for tying the knot for the first time is now 32 years for men and 30 years for women. This looks set to increase to 35 years for men and 34 for women by 2025 and has risen steadily since 1970 - when, on average, men got married at 24 and women at 22. Meanwhile, Britons have also put off starting a family - the average age of first time mothers is currently 28 years, increasing from 24 in 1970. This looks set to rise to 29 years by 2025.
Along with not being ready to settle down, high costs is the most common reason for people holding back on starting these life events. The research reveals 14.7 million people (30%) say they cannot afford to get married, have a child or buy a house.
Nearly half of those in their 20s and 30s (47%) say they cannot afford to buy a house on their current salary. In addition to this, among those who have not yet bought a property, 46% say they have been unable to because they cannot afford the deposit and 16% were unable to get a mortgage.
Of those who have bought a house but did so later than they expected, a quarter (26%) delayed buying because they did not have the money for a deposit and one in five (19%) were not ready to settle down.
Richard Rowney, LV= life and pensions managing director said: "The cost of living is having an impact on when Brits are able to settle down, have children and buy a house. Many people are struggling to afford these major life steps and our report shows this is set to get worse in the years to come as the average age for marriage, starting a family and getting on the housing ladder are all set to increase.
"Faced with high property prices, high inflation, uncertainty over the movement of interest rates and a tough economic climate, it is not surprising Brits are developing ‘Peter Pan syndrome‘. However, people need to consider the long term financial impact of delaying major financial steps, particularly if it means they will still have high debts to pay when they are much older and approaching retirement.
"With increasing financial pressures it seems some people feel like it is never going to be a right time to fulfill their goals. Seeking expert financial advice earlier on in life could help people plan better to meet these costs.”
Huw Jones
Huw Jones, Sales & Lettings Director at Shaws Estate Agents said: “Apart from the sobering thought for any new parents that their offspring may be over 40 before they buy their own home, this report shows the value of planning and saving from as early a point as possible in order to give oneself the best range of options when it comes to the major financial decisions that are faced as we go through life.”
