In November 2017, Chancellor Philip Hammond abolished Stamp Duty for first-time buyers on homes of up to £300,000. But this news was unlikely to stir the 10 per cent of young people who think that Stamp Duty pays for posting letters!
Research conducted by Halifax revealed that 10 per cent of young people aged 18-21 didn’t realise that Stamp Duty was a tax on the purchase of a home, instead thinking it paid for the price of a postage stamp.
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Halifax also said that 20 per cent of youngsters aged 11-14 think that the amount you can borrow with a mortgage is unlimited, while 33 per cent of those the same age expected their parents to cover the cost of their home.
Young people still want to become homeowners
Despite the average first-time buyer being aged 30 (or 32 in London), a quarter of people aged 18-21 polled thought that they would own a house by the time they reach 25. 59 per cent of people from the same age group said they believed owning their own home was important.
Although the survey revealed confusion among the next generation of first-time buyers, young people clearly still aspire to become homeowners and take their first step onto the property ladder.
Do young people need more home ownership education?
Halifax said that the burden falls on older generations to help youngsters clear up any confusion surrounding home ownership. This could mean buy-to-let landlords passing on their wealth of knowledge to young people.
“There’s clearly a job for all of us to help kids get a better idea of what’s involved with taking the first step onto the property ladder,” said Russell Galley, managing director at Halifax.
“Becoming a homeowner feels like a mystery for Generation Z who will soon be thinking about flying the nest.”
How can we help the young become better educated when it comes to home ownership? Let us know your thoughts below.