There is something of a millennial housing crisis in the UK at the moment, with an entire generation of people unable to afford their own home. House prices have inflated to such a point that it has become impossible for many young people to afford a standard first-time purchase, and even with numerous government schemes such as Help To Buy and Lifetime ISA's, many struggle to pull together a suitable deposit.
But even when young people are able to get a mortage, what about the costs of running a home? Looking into the figures, it seems the average cost of running a home in the UK could also prove a major stumbling block for younger generations, particularly those on low wages, incosistent wages (such as small business owners) or zero-hour contracts. The average UK household reportedly spends around £2,000 per month, yet at the same time, average real hourly earnings for under-30s in Britain has fallen 13% between 2007 and 2014 (only Greece has seen a worse performance for this age group in the advanced economies in Europe). So can millennials really be expected to own and run a home?
According to recent research, owning a three bedroom home in the UK comes with an average yearly running cost of almost £20,000, or around £1,634 per month. Taking the average UK pre-tax salary of £27,600, two working adults would be spending 45% of their post-tax earnings on household bills and mortgage repayment - but the average wage of someone under 30 is much less, sittng around £21,000. But where exactly is this money going? Let's break down some of the average costs:
- Mortgage: £965.93 per month
- Contents insurance: £19.52 per month
- Buildings insurance: £17.76 per month
- Council tax: £115.24 per month
- Television license: £12.12 per month
- Furnishings, textiles and appliances: £218.55 per month
- Utility bills: £91.90 per month
- Water: £69.33 per month
- Garden equipment, plants and tools: £20.87 per month
- House maintenance: £55.41 per month
- TV, phone and broadband: £47.40 per month
If you consider that these costs do not include things like transport, food, clothing, entertainmetn, health or education, it's easy to see how the costs associated with owning and running a home can be daunting to any generation, let alone millennials.
