We Bought a House for £37k: Why My Generation Had It Easier
In 1996, the year Elaine and I tied the knot, we did something that seems almost mythical today: we bought a house for £37k. With modest civil service jobs and no savings, we secured a 100% mortgage and even received a £1,000 cashback. It felt like winning the lottery!
Fast forward ten years, and that same house had more than tripled in value, selling for £108,000. That profit became the deposit for our next home—a much larger property we could never have dreamed of affording otherwise.
The Numbers Don’t Lie
Today, the average UK house price hovers around £268,000, while average full-time earnings are just over £37,000. That’s a house-price-to-income ratio of over 8 times salary—and it can exceed 10 times in some areas.
Back in the mid-1990s, houses cost just 3 to 3.5 times the average salary. The shift has been staggering. If Elaine and I were starting out today, with those same jobs and financial circumstances, we wouldn’t be able to buy more than a one-bedroom flat—if that.
The Deposit Dilemma
In our case, we didn’t need a deposit. Today’s buyers often need £30,000 or more just to get through the front door. Even then, lenders scrutinize every detail of your finances. It’s not just a financial issue—it’s a life delay. Many younger people are putting off having children, changing careers, or moving to new locations because they’re trapped in expensive rentals and can’t afford to move up.
“Just Stop Buying Coffee” – and Other Nonsense
We often hear that young people “just need to stop buying coffee and avocado toast,” as if homeownership is just a matter of personal discipline. That kind of advice is not only unhelpful—it’s wildly out of touch. No amount of packed lunches is going to make up the difference between an average wage and a house costing ten times that amount.
It Wasn’t All Roses – But It Was Doable
Of course, there were challenges back then too. Interest rates in the early ’90s had been eye-watering (just ask anyone who had a mortgage in 1990 what 15% felt like). But by the time we bought, rates had come down and affordability was on our side. The important point is this: the system still worked. It allowed people with ordinary jobs to get on the ladder and move up.
What About Our Kids?
Now, I look at my own children and wonder what their future will look like. Will they be able to buy a home without major financial help from us? Will they have the same security we had, the same ability to plan ahead? I hope so. But unless something changes, I fear homeownership will become a privilege rather than a norm. And that’s not the kind of society I want to leave behind.
We Caught the Ladder Just in Time
So yes, my generation had it easier. Not because we were smarter or more deserving, but because we were in the right place at the right time. We caught the housing ladder when it was still reachable. And now, it’s our responsibility to recognize that—and support efforts to make homeownership more affordable for future generations. Because everyone deserves the chance to build a home—not just a property portfolio.
