Apprentices among the most likely to own a home in their early 20s

Apprentices in the North of England, Scotland’s Central Belt and South Wales may be more likely to be able to afford their own home by the age of 21 than any other parts of the country, according to new analysis of average earnings and house prices.

The study, undertaken by BAE Systems, mapped average apprenticeship salaries against regional house prices to reveal the most affordable places in Great Britain to get on the property ladder for non-graduates.

Apprenticeships allow young people to earn while they learn from the age of 16 as they gain qualifications without any associated student debt. In contrast, university students in England, Scotland and Wales are leaving with an average debt of £48,470, £16,680 and £37,360 respectively and repayments of up to 9% of their income over a certain threshold.

North of England

An analysis of English house prices placed Burnley, Pendle, Hartlepool, Hyndburn and Durham amongst the affordable top spots for apprenticeship house hunters.

According to the Land Registry, a first-time buyer in England currently pays an average of around £255,000 for their home. This is just over nine times the average UK salary of an apprentice five years’ following the completion of their apprenticeship of £27,700 and eight and a half times the average graduate salary five years following the competition of their degree.

However, there are 70 local authorities in England where apprentices could get a mortgage in their 20s, assuming they have the average UK first-time buyer deposit of 15%.

The most affordable locations range from Barrow-in-Furness on the West coast, to Hartlepool on the East coast, which, according to the Land Registry, boast average first-time buyer house prices of less than five times the median UK salary of an apprentice five years after qualifying. The counties of Lancashire, Durham, Tyne and Wear and East Riding of Yorkshire top the rankings.

Scotland’s Central Belt

The research into Scottish house prices placed East Ayrshire, Inverclyde, North Ayrshire, North Lanarkshire and West Dunbartonshire amongst the affordable top spots for apprenticeship house hunters.

A first-time buyer in Scotland currently pays an average of around £159,000 for their home, nearly six times the median UK apprentice salary five years after qualifying of £27,700 and just over five times the average graduate salary in the same time period.

Yet in 19 out of the 32 of Scotland’s local authorities, apprentices could get a mortgage in their 20s, assuming they have the average UK first-time buyer deposit of 15%.

Five of the most affordable locations sit within the Central Belt and, according to the Land Registry, boast an average first-time buyer house price of less than four times the median UK apprenticeship salary five years after qualifying. The counties of Ayrshire, Renfrewshire, Aberdeenshire, Lanarkshire, Dunbartonshire and Angus top the rankings.

South Wales

A study of Welsh house prices placed Blaenau Gwent, Merthyr Tydfil, Rhondda Cynon Taf, Torfaen and Neath Port Talbot amongst the affordable top spots for apprenticeship house hunters.

In Wales, a first-time buyer currently pays an average of £188,988 for their home, nearly seven times the median UK apprentice salary five years after qualifying of £27,700 and just over six times the average graduate salary in the same time period.

However, there are five out of 22 principal areas in Wales where apprentices could get a mortgage in their 20s, assuming they have the average UK first-time buyer deposit of 15%.

The most affordable locations are concentrated in the south, ranging from Blaenau Gwent in the South East of Wales to Neath Port Talbot in the South West. The top five locations, according to the Land Registry, boast an average first-time buyer house price of five times the median UK apprenticeship salary or less.

Molly Caffrey (21), a Degree Apprentice at BAE Systems in Glasgow who recently bought her first home, said:

“Like a lot of young people, I felt like my best opportunity for a good career was through going to university so following my Highers I did two years of languages at university in Glasgow. I loved it but I was concerned about what job opportunities there were after graduating. I’ve also always been a saver, and studying full-time whilst working part-time on the weekends was starting to take its toll.

“After speaking to apprentices at BAE Systems, I figured it offered me exactly what I was after – a way to earn whilst getting a qualification and a guaranteed job at the end of it. I was accepted on to a degree apprenticeship in 2019 and haven’t looked back! I’ve just graduated and started my role working on frigates for the Royal Navy.

“It also brought the balance to my life that I was after. I had my weekends back as I no longer needed my part-time job and I was able to use my earnings from my apprenticeship to save a 10% deposit. I grew up not too far from Glasgow and I bought a flat in the centre of town in February with my partner – perfect for getting to work and enjoying the best the city has to offer!”

Dr Jacqueline Hall, Head of Apprenticeships and Skills at BAE Systems, said:

“As one of the UK’s largest employers, we understand there is no one-size-fits-all pathway to a career and that also applies to life’s milestones.

“Apprentices typically start their career paths a little earlier. Without the burden of student debt and with many of our sites located in areas where home ownership is more affordable, an apprenticeship provides them with a distinct advantage in getting on the property ladder.”