Falling interest rates have not offset rising house prices, and the total cost of buying the first property is £100,000 more for those born in the 1980s than it was for their parents.
Buying the first property in 1974 cost the equivalent of £154,000 compared with £254,000 today, according to a report by the Resolution Foundation think tank. This is despite buyers in 1974 paying £90,000 in net interest over the lifetime of their mortgage, compared with £63,000 today.
Lindsay Judge, one of the authors of the report, said: “When you bring together all the costs associated with first-time homeownership, the lifetime costs have increased by two thirds and millennials have got the rawest deal of any generation.”
