Young Britons are being priced out of marriage, home-ownership and parenthood according to study by First Direct.
The internet bank says that today’s twenty-somethings would need to nearly double their wages to enjoy the type of lifestyle their parents had at their age.
The average Briton in their mid-20s would need an annual salary of £39,720 to buy a house, pay for a wedding and have their first child – all milestones their parents’ generation had passed at that age. To buy a house at the same level of affordability as their parents could at the same age, the average twenty-something would need to be earning £44,600.
Someone in their mid-20s can expect to earn an average of £25,500.
A couple who married in 1985 could have expected to pick up a house for something in the region of £35,000, four times the average salary. The average UK house now costs over £163,000, or eight times the average salary.
More than one in five young people said they had, or will have to, postpone getting married due to a lack of funds and nearly a quarter say that they will have delay having children until they are in a better financial situation.
Three in ten of today’s twenty-somethings’ parents were married and on the property ladder by the time they were 25.
Paul Say, head of marketing at First Direct, said: “Today’s young people appear to be rising to the challenges of their generation. One in three (34 per cent) say money concerns make them more determined to succeed in life and be more considered about life decisions (68 per cent).
“Many may have been forced to delay life milestones but this is making them plan ahead more and think carefully about the decisions they make.”
To compound matters, the average under-25 year-old has student debts amounting to £11,467 from their university days. A figure that will increase for future generations when the government’s plan to increase tuition fees takes effect in 2012.
Some 35% of respondents aged under 25 said they need to borrow money just to make ends meet with four in ten expecting their personal levels of debt to increase over the coming year as a consequence. Around 58% of those questioned expected the cost of living to go up this year, adding to their levels of indebtedness.
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