Published on 20 November, 2017
Whether you’ve never bought a house before, you’re currently renting or you’re an experienced property owner, the housing market can feel like a confusing place. Packed with acronyms, abbreviations and confusing terms, it’s no wonder that estate agents and mortgage brokers are inundated with requests for help.
All this got us thinking: if adults struggle with the housing market, how much do children know? To find out, we asked members of the younger generations questions about the housing market, including Year 7 students, an A-level student and a millennial young adult.
The questions we asked included a mix of verbal questions, where we quizzed the participants on housing terminology, and visual questions, where we asked them to guess the price of a house based on a picture from one of our listings. Let's take a look at the results...
We asked all our participants 20 questions about houses and the housing market. Starting with simple questions such as "what is a detached house?" We then progressed to more difficult questions, like "how long does it take to buy a house?" and "what is stamp duty?"
Overall, the results showed that knowledge levels were strong from all respondents. The Year 7 students had a good overall insight, which suggests that education may be helping them and making an impact.
It was also noticeable that the millennial was far more negative about the house buying process than the Year 7 children, and was far more likely to use phrases such as "lots of money" or "takes too long", perhaps showing that respondents become warier of the housing market as they begin to look to buy.
However, all age groups showed us the driving force behind their thoughts about property: family. When asked about what type of house they’d like and how many bedrooms they’d ideally want in their dream home, all respondents mentioned family in their answer. Maybe home is still a place for all the family?
Finally, although the questions showed us that the younger generations have good overall knowledge, there are still some knowledge gaps. For example, the term “stamp duty” raised several questions from the older participants. Fortunately, our jargon buster can help them with this, and our house buying guide can guide them through the entire process!
Our visual quiz involved 20 images of homes currently for sale on our website. We asked all the respondents to rank these houses from the least expensive to the most expensive.
Surprisingly, the Year 7 students got the most expensive and the least expensive homes both correct. Both the A-Level student and the millennial also correctly guessed the house with the lowest asking price, but were both incorrect in guessing the most expensive property, as both thought one of the homes was in London, which skewed their answer.
Overall, the millennial only got one correct answer when ordering the houses, while both the Year 7 students and the A-Level student got three answers correct. The A-Level student had the least errors in ordering the houses of all three respondents.
Finally, when it came to guessing the asking price of the least and most expensive houses, it was the Year 7 students that had the most accurate guesses. Their combined price estimate for the most and least expensive properties was only £65,000 away from the true asking prices. By contrast, the A-Level student was off by just over £500,000, while the young adult was off by £686,000 (more than 10x that of the Year 7 students).
Our quizzes have shown that the younger generations perhaps know more about the property market than we give them credit for. Yet gaps in their knowledge do still exist.
However, with a good knowledge of some terminology, and a reasonable effort at ordering house prices based on only one image, maybe the future is brighter than we hoped. Plus, we can always help them with anything else they need to know!