"Young people are brimming with creativity and ambition, but our research reinforces what we’re hearing time and time again from brokers; that outdated lending models are holding too many young people back"
- Praven Subbramoney - Nottingham Building Society
New data from Nottingham Building Society has revealed how 58% of 18-24-year-olds, along with 48% of 25-34-year-olds, dream of starting their own business but worry about how it could affect their ability to qualify for a mortgage. This concern extends to pursuing personal passions, with 59% of 18-24-year-olds and 50% of 25-34-year-olds expressing a desire to turn their hobbies or interests into a profession but fearing it will harm their chances of homeownership.
Moreover, half of those aged 18-24 admitted they have never seriously considered turning their hobbies or passions into a career, as they believe it would make it impossible to save effectively or secure a mortgage.
As of November 2024, there were 4.4 million self-employed people in the UK, making up 13.1% of the workforce. But with the median net earnings for self-employed people working full time being 21% lower than that of full-time employees in FY2022/23, those who are self-employed face a harder journey towards homeownership than their employed counterparts - a challenge which is deterring thousands from following their entrepreneurial dreams.
The findings highlight a growing problem where young people in the UK are having their creativity and entrepreneurial spirit stifled by what many perceive to be an outdated mortgage system that doesn’t support their needs. With the average age for first-time buyers in the UK at 34, millions of aspiring homeowners are having to make a tough choice between their dream career and ticking the right boxes to be considered financially viable.
And it seems that regardless of these choices, young people still aren’t confident in their ability to secure a mortgage, as the findings also show that over a third of those under 35 also believe they will have to get financial support from a friend or family member to be able to get their mortgage.
“The choice between pursuing your passions and owning a home should not be one that anyone has to make," stated Praven Subbramoney, Chief Lending Officer at Nottingham Building Society, "Young people are brimming with creativity and ambition, but our research reinforces what we’re hearing time and time again from brokers; that outdated lending models are holding too many young people back.
Praven added, “When we support entrepreneurs in achieving their career and homeownership dreams, we’re not just helping individuals, we’re building stronger, more vibrant local economies. Small businesses and sole traders are often at the heart of our communities, and if they never have the chance to get off the ground, then society misses out. The solution is clear: lenders must evolve to meet the needs of a modern workforce and give young people the confidence to chase their dreams while planning for their future.”
