Twenty-five years ago, life was very different - there was stability in the job market, people were settled down and had bought a house in their twenties, and most had children born or on the way by the time they turned 30. Life was a linear path and the need for financial services from mortgages to protection to insurance was clear and defined.
Fast-forward to 2018, things have certainly changed. You only need to look at the gig economy, the millennial mind-set and the changing job market to know that the world is a very different place and mortgage customers have very different expectations. Digital-first, flexible, variable, instant and personalised now come as a standard set of expectations from preferred brands, and comparatively buying a property and committing to a long-term debt may now be seen as ‘conforming’.
In the UK, there has been a dramatic increase in the number of young adults still living at the family home well into their late 20s and early-mid 30s over recent years. As illustrated below, the percentage of young adults living with their parents rose by 5% from 1996 to 2017, costing parents close to £5,000 a year. Do you have customers with children still living at home? With these shifts in living circumstances, it is worth reminding them that the type of home and contents cover they require could be affected.
Despite this, the latest research from our Surveying Services shows that first-time buyers are actually becoming quietly confident. And it isn’t just first-time buyers – the UK housing market overall is gaining confidence, with 14% of surveyors and valuers believing the market will see increases by 2018.
Working with building societies
At Legal & General, we are working with building societies to define the home of the future. Everyone’s needs are different, from millennials to over 55s, we no longer view mortgages and homes in the same way we used to.
As building societies offer more niche mortgage products than high street lenders, a lot of innovation is taking place in the sector and the home of the future will be shaped by the type of mortgage solutions available to people.
Attending the BSA on 23rd May will be our Head of Lender Relationships, Danny Belton, who will share his thoughts and ideas on how innovation can support the home of the future.