A recent study by BAE Systems has revealed that young people who pursue apprenticeships are among the most likely to afford a home in their early twenties.
By comparing average apprenticeship salaries with regional house prices, the research identifies the most affordable places across Great Britain where apprentices could buy a home.
Why are apprentices more likely to own a home in their twenties?
Apprenticeships offer an alternative to the traditional university path by letting apprentices ‘earn while they learn’ from age 16, gaining qualifications without building up student debt.
In contrast, graduates in England leave university with average debts of £48,470, repaying up to 9% of their income once they earn over a specified threshold.
The financial freedom that apprenticeships offer gives young people a significant advantage in achieving milestones like home ownership much earlier in life.
Where are the most affordable places for apprentices to live and work?
According to the Land Registry, first-time buyers in England face an average house price of £255,000 – over nine times the average apprentice salary five years after qualifying, and eight and a half times the average graduate salary five years post-university.
Despite these figures, there are 70 local authorities in England where young apprentices could realistically secure a mortgage in their 20s, provided they have the average UK deposit of 15% for first-time buyers.
The study shows that northern regions are the most affordable locations for apprentices who want to buy a home. Areas like Burnley, Pendle, Hartlepool, Hyndburn, and Durham top the list, with the counties of Lancashire, Durham, Tyne and Wear, and East Riding of Yorkshire leading the way. These regions include towns like Barrow-in-Furness and Hartlepool, where average house prices for first-time buyers are less than five times the median UK apprentice salary after five years on the job.
Apprentices already benefitting from earlier access to home ownership
One apprentice benefiting from this pathway is Molly Caffrey, a 21-year-old degree apprentice at BAE Systems, who recently became a homeowner in Glasgow. After initially pursuing a university course in languages, Caffrey switched to a degree apprenticeship when she saw the guaranteed job prospects and opportunity to earn a salary while training. She commented, “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, BAE Systems’ head of apprenticeships and skills, highlights the importance of diverse career paths: “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 careers earlier and, without the burden of student debt, are often better positioned to afford a home.”
