Four friends, Francesca, Graeme, Sonja, and Kieran, decided to co-buy a three-bedroom flat in north-east London due to high property prices. By pooling their incomes, they purchased the home for £650,000, which was beyond their individual means. The arrangement facilitated smooth acquisition as they established a floating deed of trust to define ownership. This reflects a broader trend among young buyers in the UK, with major lenders observing increasing interest in non-traditional mortgage options and co-buying arrangements as a means to achieve home ownership.
Francesca, a musician, says when they all bought the flat together in 2022, she and her partner Graeme would not have been able to afford a suitable place in London on their own.
Graeme says they would have been able to afford a property in the 350,000-400,000 price range - but by bringing all four incomes together, they could afford 'a lot more'.
Some of the UK's biggest lenders have reported trends in people co-buying with friends, siblings and parents, indicating a shift in home-buying practices.
Lloyds Bank said its research found half of young first-time buyers were willing to consider more non-traditional routes to be able to afford a home.
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