As the prospect of getting on the property ladder continues to seem less and less attainable, young people are instead turning their attention to getting on the road.
Buying a brand new car has become a bigger milestone for Gen Z than buying a house – and it may be because having your own set of wheels feels more doable in the current housing climate.
Saving to buy a home is going to take a while whichever way you look at it, but it’s particularly dismal for Gen Z, the cohort born between the mid-to-late 1990s and early 2010s.
Data from Zoopla shows that the average property price in London is £731,910, while for the UK as a whole the figure sits at £339,172.
In recent months there has been some slightly less depressing news: according to Halifax, first-time buyers paid £9,057 less upfront in 2023 compared to the year before, with some UK regions seeing deposits drop by up to 16%.
However, when you compare the expected deposit of £53,414 to the average annual salary of between £22,932 and £30,316 for under 30s, you can see what we mean.
Ready to start your homebuying journey?
You can access completely fee-free mortgage advice with London & Country (L&C) Mortgages, a partner of Metro. Customers benefit from:
– Award winning service from the UK’s leading mortgage broker
– Expert advisors on hand 7 days a week
– Access to 1000s of mortgage deals from across the market
Unlike many mortgage brokers, L&C won’t charge you a fee for their advice.
Find out how much you could borrow online
Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
In response to this bleak landscape, a recent survey of 2,032 drivers by the online motoring marketplace Auto Trader found that over a third of drivers think buying a brand new car is a bigger milestone than buying a home.
The 18-29 crowd are most likely to have this view, with 52% of this age group preferring to save for four wheels over their own four walls.
In what may come as a surprise to those who moved to the capital from the countryside, Londoners are also especially likely to value having a car than a house (55%), putting paid to the stereotype of the cityslicker who hates getting behind the wheel.
It just so happens that both Londoners and young people have been hit hardest by rising house prices.
‘With the ever-growing challenges of getting on the property ladder, it’s clear that the focus and life goals for a number of Brits have changed entirely,’ comments Erin Baker, editorial director at Auto Trader.
‘This has opened the door for many to consider channelling their financial efforts into saving for a brand-new car which features some of the newest tech innovations and accessories along with the latest number plate that will no doubt impress their friends and family both in person and on social.’
New car registrations are on the rise on the UK roads too, with February marking the highest number in 20 years, according to the Society of Motor Manufacturers and Traders (SMMT).
The findings fly in the face of previous research claiming Gen Z are lagging behind older generations when it comes to taking driving lessons, using the ‘cab of mum and dad’ and costing their parents thousands.
More Trending
Adults with Gen Z children of driving age were found to be paying more than £1,300 a year as unofficial taxi drivers, with the age when people swap their L plates for P plates falling between 26 and 27 rather than their late teens.
Half as many young people aged between 17-20 have a full driving licence compared to the same age group 30 years ago, which was partly credited to a high cost of living and the increasing price of learning to drive.
Lessons vary in cost depending on where you live, but RAC put the typical figure between £25-£45 per hour. If your instructor charges closer to the top end of the estimate, 45 practical lessons will set you back a massive £2,025.
Deals of the Day
Lidl trials game-changing app shopping feature across all UK stores
Abandoned department store transformed into the UK's biggest charity shop
Tesco makes major change in stores as shoppers ask 'what's the point exactly?'
Save £300 on the 'Ferrari of lawn mowers' that gardeners are calling 'unbelievable'
Suede jackets are taking over the fashion scene – here’s where to shop the staple
That said, experts at Bristol Street Motors and Red Driver Training agreed that Gen Z has not fallen out of love with driving, but delays due to Covid and other pressing life needs have had an impact.
Do you have a story to share?
Get in touch by emailing MetroLifestyleTeam@Metro.co.uk.
MORE: This is how much it costs to raise a child in 2024
MORE: Supermarket expert shares little known pricing trick that fools shoppers
MORE: Beer, bread and biscuits set to get more expensive due to relentless wet winter
