New research by NHG Homes, one of London’s largest housing providers, reveals that four in ten young people aged 20–35 have less than £50 left before payday. The survey of 2,000 non-homeowners also found that 66% feel they are doing the right things financially but not getting ahead, while 63% say financial stress has damaged their mental health.
Financial Struggles Beyond Lifestyle Choices
Contrary to stereotypes about spending on coffee and avocado toast, young people are financially prudent. Nearly half (48%) actively avoid unnecessary spending, 39% track their outgoings, and 32% save regularly. Respondents overwhelmingly attribute their struggles to external factors, with 61% citing the rising cost of living as the main cause.
Homeownership Dreams Dashed
Only 15% of non-homeowners believe they will ever be able to buy a home. Among 30- to 35-year-olds, who have spent nearly a decade renting, just 13.5% think homeownership is achievable. In response, NHG Homes has launched The DOOR (Deposit Out Of Reach) Club, a community offering support and information for first-time buyers. The initiative promotes shared ownership, which requires a smaller deposit than buying outright.
Shared Ownership Success Story
Ian, a social worker, and Patty, an architect, moved into a three-bedroom flat at Gadwall Quarter in Woodberry Down, North London, after purchasing a 25% share through NHG Homes’ Shared Ownership scheme. They live with their two-year-old daughter, Sierra, and Sphynx cat, George. 'It was thanks to Shared Ownership that we were able to own this flat without having to compromise on its great central location,' Ian said. The couple previously rented a one-bedroom flat in Highbury and were able to stay in the area while gaining more space.
The DOOR Club: Practical Support
The DOOR Club partners with money coach Laura Ann Moore to provide financial tips and guidance. 'Young people aren’t failing at money, the system is failing them,' Moore said. 'It’s about giving people the tools, the confidence and the mindset to know that their situation is not their fault, and that there is a way forward.' NHG Homes will host finance events across London this summer.
