But today, buying a home is a challenge that previous generations would barely recognise.
House price increases, slower wage growth, higher deposit requirements, higher interest rates and stricter mortgage criteria are all barriers that keep people from stepping onto the property ladder.
As a result, the average first-time buyer in the UK is now 35 years old, and research suggests it takes an average of 13 years to save a typical deposit.
That doesn’t just delay homeownership; it also delays many financial benefits that come with owning a home.
Because the longer it takes to buy, the longer it takes to build equity in a home you own.
The deposit challenge
Homeownership among 25–34-year-olds has fallen significantly over the past few decades, while only 8% of non-homeowners4 have enough savings for a typical deposit.
This deposit challenge is particularly hard for younger generations, because they are far less likely than previous generations to own a home and more likely to be in the private rented sector.
Research suggests that around 3.6 million renters can afford a mortgage in their local area but cannot save the deposit needed to buy a home. For many people, the barrier isn’t the mortgage itself.
Those first-time homebuyers who can afford to buy are often taking longer mortgage terms to make payments more affordable, meaning some will still be making mortgage payments as they approach retirement.
These factors are creating an economic difference in lifetime wealth – the total financial value you generate and retain over your entire life – between older and younger generations
A new way into homeownership
For many aspiring homeowners, owning increasingly depends on access to family support.
Those with help from the “Bank of Mum and Dad” can often buy sooner, while others face years of additional saving despite being able to afford a mortgage
This is why, at Own Homes, we are rewriting the rules and are helping you remove that barrier and build a deposit while living in the home you want to own.
We have redesigned the pathway to homeownership to allow you to step onto the property ladder earlier.
We help you move from renting to owning within five years, creating a fairer, faster, and more accessible way to buy a home.
Own Homes is built to help you own.
Here’s how it works:
- You choose a brand-new home from one of our partner housebuilders, and we buy it on your behalf.
- When it’s built, you move in under a secure, long-term tenancy. It’s your home from day one.
- Instead of saving on top of household bills and other living expenses, part of your monthly payment is automatically saved towards your mortgage deposit.
- We set your monthly payments at a level comparable to what a real mortgage on the property would cost. This gets you used to the actual cost of owning the home.
- Part of your monthly payments are automatically tucked away into a ring-fenced savings account. Your deposit builds up effortlessly in the background with a structured savings plan
- Within five years, you’ll have saved enough to buy the home you already live in, using the deposit and a mortgage from your lender of choice.
Before you move into a home, we check whether you can afford it based on your income and personal circumstances. Because owning a home should feel achievable.
We’re ready to move when you are.
If you’re ready to become a homeowner, can afford a mortgage, but cannot save for a deposit, then Own Homes may be able to help.
Our RentSaveOwn model is designed to help aspiring homeowners move into a new-build home, build their deposit over time and work towards owning the home they already live in.
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