'We've got a holiday to pay for first' - Why so many young people are struggling to buy a home in Derby

Moving home is widely cited as one of the most stressful things you can do in life.

Even without the mountain of paperwork involved, being able to afford your own home is probably the biggest hurdle to overcome.

That struggle is arguably felt the hardest by the 25-35-year-olds who are battling the plights of inflation, the repercussions of COVID-19, and honestly, a world that is not set up for them.

They are a forgotten generation, many of whom, attended virtual universities (and still racked up monumental debts), who work 9-5 jobs from their childhood bedrooms and have to choose between moving out or owning a car.

For many in this age bracket the idea of owning their own home feels like a far-off dream - and when you look at the stats it's easy to see why.

The cost of getting onto the property ladder

Ok, let's break this down...

To buy a property in Derby, you can expect to pay approximately £231, 515, according to Rightmove.

The most popular properties for sale were semi-detached properties selling for an average price of £212,281. 

Detached properties sold for an average of £348,441, while terraced properties could be bought for around £167,642.

Even at the lowest end of the scale, you need a 10% deposit. Let's call that £20,000 for argument's sake.

That is a hefty amount of money to save up each month when the cost of (just about) everything is going through the roof.

Holiday > home

Editor, Abigail Rabbett, 26, from Cambridge said: "I am on a fair wage for my age and I still struggle to save each month.

"The cost of socialising is astronomical (a cocktail costs around £12) but I don't want to miss out on being young.

"I know a lot of my friends and I struggle to get the balance between enjoying our youth and planning for the future right.

"That paired with the fact that owning a home feels so far away, often makes me feel quite defeated.

"I tried to have a discussion with my boyfriend about starting to get serious about saving for a home but we came back to the same conclusion: we've got a holiday to pay for first.

"We try to be sensible with our weekends and as a friendship group we have quite a heightened awareness of money and each other's outgoings - however, what do you do when no one has a base to watch a movie?

"And there are only so many times you can go for a walk. Inevitably we end up spending money going out for dinner or to the cinema, because how else are we going to see each other?

"It's a vicious cycle of spending to see people, or sitting in your room (where you work all day) and being lonely. I've done the latter and it didn't end well."

What the stats say

According to Statista, only 10.1% of homeowners in 2023 were young people, aged between 25 and 34.

In comparison, 19% of homeowners, which is nearly double, were aged between 45 and 54.

This disparity could highlight the difficulties faced by young people to get on the housing ladder.

There are myriad challenges facing people in the 21st century.

The country is still in the trenches of a cost-of-living crisis.

The cost of fuel is reported to have rocketed by the highest margin since February 2022, and you only need to look at your weekly food shopping bill to know first-hand how food prices have risen over the past year.

Even if you have somehow miraculously navigated these challenges, the pandemic-induced lockdown saw people’s careers being thrown off course.

Gaps in employment would have impacted mortgage approval rates, which only exacerbated the journey of being able to buy a property. 

On the rise again

One of the regions set to see a rise in house prices is Derby, according to the National Association of Property Buyers (NAPB).

As reported by property finance experts The Intermediary, Jonathan Rolande, a NAPB spokesman said in December 2023: “It has been estimated that overall, all regions will experience house price falls next year, ranging between -1.5% and -4%. But with each passing week, I think these predictions are looking wider and wider off the mark. 

“In fact, I believe many towns and cities outside of London can expect to see price rises every month throughout 2024.”

Halifax and Motherwell which have already witnessed price rises of 3.6% and 2.4% respectively, are expected to continue this trend.

Rolande identified Derby plus other areas such as Liverpool, York, and Bolton as areas likely to see house price increases.

He said: “These are all areas where property prices are rising. I don’t see any evidence of that changing in 2024 given the way the market is going.”

But why?

According to Rolande, two key factors are pushing house prices up in Derby.

He said: “One is a shortage of available property, and the second is the fact there is no clear roadmap to housebuilding to address that supply shortage. 

“Buyers in these spots are therefore willing to pay a little bit more as they are desperate to get their foot on the ladder.”

NAPB provided an update last week following their quote from December 2023, saying ‘revised forecasts hint at a softer decline and a surge in buyer confidence.’

Regardless of confidence in the property market, it is still not easy to buy a home in the 21st century regardless of age.

What are your thoughts about property prices in Derby? We would love to hear from you, whether you aspire to be on the property ladder if you have given up, or if you’re happy with your living arrangement, whatever that may be. 

Find out more about our series here and get in touch with us today by emailing us on [email protected]