'We're both working and in our 30s, but house prices mean we're living with my fiancée's parents'

Every generation often feels they had it harder than the one before, but when it comes to getting a financial foothold in the adult world, there has perhaps never been an economic cocktail of circumstances which makes this more difficult.

Spiralling interest rates and exorbitant mortgage costs make getting on the property ladder “almost impossible” for young people in their 20s and early 30s. Despite years of training, graduate starting salaries in most professions fall short of paying the bills and still having some sort of quality of life.

The situation is compounded by the ongoing cost of living crisis with inflation reaching a 41 year high of 11.1% in October 2022 and still running at 4% higher than this time last year.

With average student loan debts for 2023 running at £45,000, many young people face the burden of paying off a small mortgage before even thinking about moving out and getting their first home.

The result is a Peter Pan generation of young people trapped into a Hobsons Choice of living at at home or paying someone else's mortgage through inflated rental costs.

It’s a trap which University of Sunderland graduates Lee Christian and his fiancé Aisling Nally, both 31, currently find themselves in.

Lee, who grew up in Houghton and attended Houghton Kepier School (now academy), said: “We were renting a place together but when we started to look at the amount we were paying to effectively pay someone else’s mortgage, it was soul destroying.

“We decided to move in with Aisling’s parents to start saving the 10% to 20% deposit we need for a mortgage.

“We are obviously grateful, but there isn’t lots of room and once you get into your 30s we would really like some space of our own, as would Aisling’s parents.

“I know some people may go to their parents to get help with a deposit but my parents wouldn’t be in a position to do that. You also want to be able to stand on your own two feet and it’s a bit demoralising to have to go and ask for help.”

Lee studied Sports Coaching at the University of Sunderland between 2013 and 2016 and then returned to qualify as a primary school teacher in 2023.

He is currently looking for his first teaching job and in the meantime is working as a student support advisor, but even once he secures his first position in the classroom he is not confident it will be enough to get a mortgage.

Lee said: “Similar to nursing, the starting salary for a teacher is underpaid. People don’t realise the amount of work you have to do and with the cost of living at the moment it just doesn’t financially add up.

“It’s very frustrating as after going to university to get your qualifications you should be able to get a career which at least makes ends meet.”

With Lee currently in full-time employment, the couple have looked into the prospect of getting a mortgage but have suffered a series of knockbacks.

He said: “We are saving for a deposit and would love to get a place of our own, but Aisling is self-employed as a dance teacher and the banks don’t seem to see our situation as a secure mortgage.

“I have looked at getting a mortgage on my own, but with the prices of property at the moment this really restricts the type of property you can get and the location you can live.”

It’s a situation which is also having serious implications for the couple’s personal life.

Lee said: “We are looking to get married and have a family but to do that we need to get on the property ladder and in a house which is large enough for future children.

“It’s a crazy situation to be in. We are both working and yet we still can’t do this. Previous generations seemed to be able to get on the property ladder with just one salary but today’s world just seems to be a lot more difficult.

“I have a lot of friends in a similar situation as they just can’t get on the property ladder as they don’t have high enough wages.”

After studying both undergraduate and postgraduate courses, Lee is also saddled with tens of thousands of pounds worth of debt in the form of student loans.

He said: “I currently owe around £50,000 on my loans and I feel financially trapped. It feels like my generation is being penalised for wanting to get a career and a good job.

“Student loans were much lower for previous generations and going even further back, people got grants to go to university.”  

Also burdened with the debt of her student loans and caught in the Peter Pan trap is Helena Batty.

Helena, 24, studied Media at the University of Sunderland and is currently working at JD Sports and living at home with her mum in Seaburn.

She said: “I didn’t want to rent as I would rather save this money for a deposit for a place of my own. I have opened a ‘Get Help to Buy ISA’ and I’m aiming for 10%, but with the cost of living at the moment and things like high premium car insurance for young people, it’s proving to be really difficult.

“I would like to move out and get my own place but you want to be able to get something decent and in a nice place to live.

“I’m happy with my mam, but I am at an age where you would like to have your own space and independence. 

“Nearly all my friends are in the same position and are living at home. There’s only one person who I know who has moved in with his partner, but he has been saving since he was 16.”

Like Lee, Helena is also entangled in the shackles of student loan debt.

She said: “I currently owe around £30,000. I’m a long way off the amount I need to be earning to pay this off, but I’m sure one day it will come back and bite me.”

So what is the answer?

Helena said: “There needs to be more schemes to help young people get on the property ladder. There are currently things in place to help but it’s just not enough.”

Lee added: “More needs to be done to help get people on the housing ladder. There needs to be greater flexibility in mortgage eligibility and maybe a return to 100% mortgages which used to exist.

“There also needs to be greater support for students with tuition fees to not end up in so much debt.”