A Generational Shift: It is all about the ‘Forever Home’
How we buy homes is changing, and a new generation of buyers is driving it. This ‘forever home’ trend is particularly strong among millennials, with many choosing homes with more bedrooms than they currently need.
So, why do so many first-time buyers aim for a larger home from the get-go? The attraction of having more space is one reason, but it is also about making a savvy financial and life choice. The reality is that moving house is expensive and stressful. From legal fees and surveys to the dreaded stamp duty, the costs of moving up the property ladder can quickly add up and feel overwhelming.
For a second-time buyer, stamp duty on a £300,000 home alone could be as much as £5,000, not to mention all the associated moving costs. By purchasing a ‘forever home’ now, first-time buyers avoid these significant expenses in the future.
Beyond the prospect of saving money over the long term, there is also a clear lifestyle trend at play. As the average age of a first-time buyer rises to 33, it makes sense that people are looking for a property that can accommodate their future plans, whether that is starting a family or just having more room to breathe.
For many years, it was not uncommon for twenty-somethings to buy their first flat to get on the property ladder. But now, with first-time buyers needing to save longer for a deposit, many are skipping the traditional first step of ‘flat first, house later’ to make a more long-term investment.
According to Barclays, a whopping 22% of millennial homeowners bought a property with more bedrooms than they currently need, all to avoid the hassle of upsizing later on. This forward-thinking approach is a hallmark of this generation’s buying habits.
Changes in the mortgage market have made this shift more accessible. Banks and building societies are now offering mortgages with lower deposit requirements and higher income multiples. This means it is becoming easier to secure the larger loan needed for a forever home, giving buyers the power to buy a home that suits their lives today and for many years to come.
Evolving Lifestyle Changes
But this isn’t just about the number of rooms. Lifestyle is a huge factor. While millennials prioritise gardens and outdoor space, many Gen Z buyers are more interested in a dedicated work-from-home space. This desire for a home that fits modern life is a key reason so many are buying their ‘forever home’ from the get-go.
Many first-time buyers today also have parents and grandparents who live far away or overseas. Hence, the convenience of having a spare bedroom for visiting relatives is a big attraction, enabling them to maintain close family relationships.
To make this possible, first-time buyers are taking on longer 30-year-plus mortgages. While this means paying more interest over time, it makes the monthly repayments more manageable, giving buyers the financial flexibility they need to secure the home of their dreams without being overwhelmed. It is a strategic move that reflects a new confidence in homeownership and a commitment to building a life in one place.
The Smart Financial Moves Behind the ‘Forever Home’ Trend
So, how are first-time buyers managing to afford these larger ‘forever homes’? The answer lies in some clever financial strategies and a changing mortgage landscape. It is all about finding ways to make a bigger purchase more manageable in the short term.
The most popular approach is opting for a longer mortgage term. A 25-year mortgage was the norm, but over 40% of first-time buyers now choose mortgages of 30 years or more. This might mean paying more interest in the long run, but it significantly lowers your monthly repayments, giving you more breathing room in your budget. It is a trade-off many buyers are willing to make to get the home they truly want and can see themselves happy with for many years.
Thanks to recent shifts in the lending world, it is also becoming easier to secure a bigger loan from leading banks and mortgage lenders. Banks and building societies are introducing mortgages with lower deposit requirements, some as low as 2%.
This new criterion helps those with a solid income but haven’t been able to save a huge deposit, maybe because they have been paying high rental costs. Additionally, some lenders now offer higher income multiples, meaning you can borrow a larger amount relative to your salary—sometimes up to six times your annual income. These changes, combined with lenders lowering their ‘stress rates’, are making it more feasible for young professionals to secure the loan needed for their ideal home right from the start without worrying about climbing the property ladder.
Conclusion
In summary, many first-time buyers bypass the traditional property ladder and head straight for their ‘forever home’. This trend is driven by a desire to avoid the significant costs, stamp duty, fees, and the stress of moving in just a few years. By stretching their mortgages over longer terms, often 30 years or more, buyers can afford a larger property now while keeping their monthly payments manageable. This is a smart, long-term approach to homeownership that prioritises stability and space.
If you are ready to take this exciting step, a trusted estate agent can be your best friend. At Crown Luxury Homes, we specialise in helping young, professional first-time buyers find their dream homes in London. We understand this is a momentous step for you, but consider it an investment in your future security. That is why we are here to guide and support you through the entire process, from start to finish.
Our services are designed to give you complete peace of mind. We work with trusted RICS-accredited surveyors to help you choose the proper homebuying survey for your property. This crucial step can uncover hidden issues, giving you the confidence to proceed, renegotiate, or walk away if necessary. We also offer bespoke recommendations for interior design and soft furnishing firms to help you turn your new property into a home you truly love, tailored to your budget and preferences.
Ready to find your forever home? Contact us at Crown Luxury Homes today, and let’s start your journey together.
