The next generation of homebuyers are in for a shock, as many expect to snap up their first property for just £50,000.
Research has highlighted a raft of misconceptions among young people, with one in five 11 to 14 year olds assuming they will be able to borrow unlimited amounts to buy a home.
A survey of over 1,000 people aged between 11 and 21 revealed they had little idea of how much a house cost, or how long it would take them to save for a deposit. Many expected their parents or the Government to help them on to the property ladder.
What do they expect?
A third of children aged 11 to 14 are banking on their parents giving them the cash they need to buy their first home, while an optimistic 21% of 18 to 21 year olds think the Government will help them on to the housing ladder.
One fifth of young people also vastly underestimate the cost of becoming a homeowner, as they expect to be able to purchase a home in London for just £50,000 to £200,000. But, in reality the typical first-time buyer property in the capital costs £422,580.
A quarter of men in the 18 to 21 age bracket also think they will only need to save between £5,000 and £10,000 for a deposit – significantly short of the average £32,321 needed by first-time buyers.
Despite underestimating the size of the deposit they would need, a quarter of those aged 15-17 expected it to take them 20 years to save for one.
Any other confusion?
Stamp duty was a mystery, with 10% of 18 to 21 year olds thinking the tax related to posting letters.
Unsurprisingly, members of Generation Z were most likely to turn to the internet to buy a property at 36%, while 33% would visit an estate agent, but 27% thought a bank would help them find a home.
There was considerable confusion about the home buying process itself, with one in six older teens expecting it to take a year to complete a purchase.
What about when they've bought a property?
Looking to the future, surprisingly, once they have their new home, 32% of young people rated meeting their neighbours as a higher priority than getting Wi-Fi installed.
They were also more likely to focus on buying a sofa than having a housewarming party.
But many were not anticipating the long haul of repaying their mortgage, with a fifth of 18 to 20 year olds counting on receiving an inheritance to clear their loan.
Despite their lack of knowledge, nearly six out of ten, 18 to 21 year olds said they thought it was very important to own a home.
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