More young adults living with parents in Northern Ireland
Approximately 34 per cent of adults in Northern Ireland aged 20-34 still live with their parents, compared to an average of 25 per cent across the rest of the UK.
They have become known as the boomerang generation because they return back to living with their family after completing their education, or for some reason or other fail to permanently move out. The latest government research is based on figures from 2017, and shows the extent of the difficulty first time buyers in Northern Ireland are experiencing to get a foot on the property ladder.
Interim director of the Chartered Institute of Housing, Prof Paddy Gray, points to a change in the availability of money and secure “jobs for life” as factors behind the high number of young adults struggling to purchase a property. Buying a house 10-20 years ago was significantly easier because of a large number of 95-100% mortgages which removed the hurdle of raising a significant deposit. With regards to the changing landscape of employment Prof Gray said:
“We have a gig economy now, particularly for young people who are working different part time jobs. They don’t have the security of jobs for life.”
That impacts on the willingness of Lenders who have introduced much stricter criteria for mortgage borrowing in recent years. It means that saving for a large deposit is now essential for the majority of first time buyers, which is why many choose to stay longer in the family home to save money that would otherwise be spent on rent.
To watch a short video explaining the legal process to buying a house click here.