Get the free Morning Headlines email with news from our reporters around the world
Sign up for our free Morning Headlines email newsletter
Housing costs have soared for everyone in the UK in recent years. Whether you own a home or rent, bills have risen, with mortgages and rental prices reaching record highs. For many young people, the promise of home ownership has become a dream, with house prices almost nine times higher than the average salary.
With it harder than ever to get into the property market, some would-be homeowners are looking for unconventional ways to achieve their home ownership dreams. Research from Lloyds Bank shows that just over half of young people would be willing to buy jointly with a friend or sibling – a trend that has grown in recent years.
Jack, 27, and Gemma, 28, are two friends living in London. After renting together for seven years, they decided to take out a joint mortgage and share the cost of the deposit.
“The rent became far too expensive for us,” said Gemma. “It felt like any promotion at work or pay rise due to inflation would be offset by the rent increase.”
The couple say their rent has risen by about 40 percent in the last five years they have been renting. This is not an unusual case for London, where rents have risen by almost 50 percent since 2021. The average rent in the capital was £2,121 in April 2024.
“We looked into buying a home together and it was actually cheaper for us to take out a mortgage and put the money into an investment as well,” Gemma added.
The couple now live in Woolwich, a well-connected area of south London. Their new-build two-bedroom, two-bathroom home from developer Fairview cost £440,000 and had a 10 percent deposit of £44,000. Jack and Gemma will share this amount equally, £22,000.
“We decided not to wait until each of us could buy the property, or until we could do it with a partner. We just thought it would be better to get out of the rental market now and do it together,” said Gemma.
Joe Almeida, 34, recently had a similar idea when he bought a house in Feltham, Middlesex. The chef’s buying experience was a real family affair, with his wife, older brother and two brothers-in-law helping out.
To secure a £34,000 deposit, Joe put down £15,000 and his older brother chipped in the additional £19,000. His two brothers-in-law were instrumental in reducing the overall mortgage size by acting as joint borrowers to make it easier for Joe to qualify.
He said: “My brother-in-law and sister-in-law helped me get a mortgage as joint borrowers. And my older brother helped me with the minimum down payment.
“I actually didn’t want to go to joint borrowers, but they said ‘do it’ because I couldn’t get the mortgage I needed for a three-bedroom house. That’s why I went with them.
“Without them, I would only have had enough money for a £200,000 property, not enough for a three-bedroom house.”
Joe now lives with his wife, their four-year-old son and his two brothers-in-law. He highly recommends the method he used to buy his home, advising people: “If you have a family that is willing to help, you should go for a joint borrower mortgage.”
He was able to secure his mortgage with the help of broker Tembo, who specialise in helping first-time buyers and providing affordability support. The mortgage broker said a ‘Joint Loaner Sole Proprietor’ scheme like Joe’s was one of the most effective ways to increase affordability. The scheme is growing in popularity and is offered by around 20 lenders, compared to just 10 four years ago.
For some, the rental market can seem so bleak that they avoid it altogether if possible. This was the case for Dylan and Marcus Hall, 22 and 27, two brothers from Dunfermline, Scotland. The couple were keen to move away from home after living with their parents during the Covid pandemic.
“We decided it would be best to move out together since we both agreed on our real estate wishes,” said Dylan, who works as a human resources manager.
“Since we had already lived together before, it made sense to buy together and we already knew each other’s habits and situation.”
Neither of them had rented before and they decided to own a home instead. Dylan explained: “We really wanted to avoid renting and living together meant we could both get into the property market, whereas separately neither of us would probably have been able to afford a house.”
Their fears are not unfounded, as property prices in the UK have also been reaching ever higher record levels in recent months. The average house price in the UK is currently relatively stable at £285,000. Sudden price increases from 2021 mean that this figure has risen from £189,500 at the start of the year – a 50 percent increase in just over three years.
For many would-be homeowners, the idea of buying a house with a friend or sibling may seem too obvious. According to Lloyds Bank, young people who weren’t keen on the idea most often said they didn’t want to complicate their relationship.
Subsequently, many respondents said they were unsure how the agreement would affect possible future plans to move in with a partner.
For Jack and Gemma, none of these were real problems. They said they approached the plan with “transparent” conversations. Technical adviser Gemma explained: “There have to be open channels of communication and there will be difficult conversations.”
“Whether it’s about what you expect from a property or area or whether you want to see each other’s finances in a level of detail you probably never have before.
“It’s important to be open and honest. Otherwise, there will be surprises that can lead to even more uncomfortable conversations or even the loss of your dream home.”
Brothers Dylan and Marcus also acknowledge that the unconventional route to homeownership can be challenging, so they advise anyone considering a similar arrangement to discuss the potential issues.
“We both thought about how we would handle future circumstances, such as if we decided to move in with a partner,” Dylan added.
“We discussed our problems very openly because we already knew each other very well. And we made sure we had a plan in case one of us wanted to move out. That took away all our worries.”
But Chef Joe had no concerns about living with his brothers-in-law: “It’s better to live with family. It’s nice. It feels like home.”
Amanda Bryden, mortgage director at Lloyds Bank, said: “While many of us imagine our first property purchase as a home purchase with a partner, this new data shows that more people are open to buying with a friend or sibling than many would expect.
“Buying together with a friend or sibling can be tempting because you’ve probably known that person for a long time. But the new data also shows that people don’t always feel comfortable discussing financial topics.
“Just as with any purchase with other people, we recommend that you always speak to a qualified lawyer about the implications of buying property together to facilitate your future process should you later decide to sell.”
