"Our research reinforces what we’re hearing time and time again from brokers; that outdated lending models are holding too many young people back."
- Praven Subbramoney, chief lending officer at Nottingham BS
A significant number of young people in the UK are giving up on their entrepreneurial dreams due to fears it may jeopardise their chances of securing a mortgage, new research from Nottingham Building Society shows.
The data reveals that more than half (58%) of 18-24 year olds, along with nearly half (48%) of 25-34 year olds, dream of starting their own business but worry about how it could affect their ability to qualify for a mortgage. This concern extends to pursuing personal passions, with 59% of 18-24 year olds and 50% of 25-34 year olds expressing a desire to turn their hobbies or interests into a profession but fearing it will harm their chances of homeownership.
Moreover, half of those aged 18-24 admitted they have never seriously considered turning their hobbies or passions into a career, as they believe it would make it impossible to save effectively or secure a mortgage.
As of November 2024, there were 4.4 million self-employed people in the UK, making up 13.1% of the workforce. But with the median net earnings for self-employed people working full time being 21% lower than that of full-time employees in 2022/23, those who are self-employed face a harder journey towards homeownership than their employed counterparts.
Regardless of these choices, young people still aren’t confident in their ability to secure a mortgage, as the findings also show that over a third of under 35s also believe they will have to get financial support from a friend or family member to be able to get their mortgage.
Praven Subbramoney, chief lending officer at Nottingham Building Society, said: “The choice between pursuing your passions and owning a home should not be one that anyone has to make. Young people are brimming with creativity and ambition, but our research reinforces what we’re hearing time and time again from brokers; that outdated lending models are holding too many young people back.
“When we support entrepreneurs in achieving their career and homeownership dreams, we’re not just helping individuals, we’re building stronger, more vibrant local economies. Small businesses and sole traders are often at the heart of our communities, and if they never have the chance to get off the ground, then society misses out. The solution is clear: lenders must evolve to meet the needs of a modern workforce and give young people the confidence to chase their dreams while planning for their future.”
