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Only 3% of UK homes sold to 18-30s

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Only 3% of UK homes sold to 18-30s

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Published by Max Salsbury for 24dash.com in Housing and also in Finance

Only 3% of UK homes sold to 18-30s Only 3% of UK homes sold to 18-30s

Only 3% of all UK homes sold in June were to people aged 18-30, new figures from the National Association of Estate Agents have shown.

The figures reveal a steep drop from last August, when the age group made up 12% of the country's homebuyers.

The pitiful figure follows the April introduction of the Mortgage Market Review (MMR) - which specifies that all mortgage borrowers need to show they have considered how they will be able to manage their repayments in the long term.

Research by global information services company Experian found that, despite the MMR’s emphasis on affordability, a third of all would-be 18-29 year old buyers admit they currently find it difficult to budget each month, with:

• 52% confessing to overspending in the last month.
• A quarter had to dip into their overdraft last month (12% heavily).
• 18% say they are unable to cut back outgoings any further.

Experian's Peter Turner said: “These findings show just how important it is for young people to get their finances in the best shape possible in advance of a mortgage application. Interest rates have been low and stable for so long that the current generation of first-time buyers has never known it any other way.

"But as the economy improves, interest rates will inevitably rise, and could rise several times. It’s therefore vital that young people seize control of their financial situation to get themselves in the best possible shape. Improving your credit score is critical for younger borrowers, many who may not have built up a sufficient credit history or may be unaware how their past repayment affects future borrowing.”

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