How the cost of living crisis has created the ‘Guppies’ – a new breed of under 40s who have ‘given up on property’ as study reveals more than a third who earn over £60,000 won’t even buy a house in the next decade

The cost of living crisis has created a new breed of under-40s known as ‘Guppies’ – young professionals who have ‘Given Up on Property’.

They are in stark contrast to the ‘Yuppies’ of the Eighties and Nineties – young urban professionals who had few issues buying property. 

A new study has found very few adults own their own homes. Just 22.5 per cent of those aged 25 to 34 have bought, this drops to 1.4 per cent for people aged 24 or under. 

Some are debating whether to give up holidays, their social life and even their relationship to be able to afford a home.  

More than a third of those earning over £60,000 a year say they have given up on affording to buy in the next 10 years, according to new figures from property experts Zoopla.

As mortgage rates hit a 15 year high, just one in five under the age of 40 say they will ‘definitely’ be able to afford a home in the next decade.

One of the major problems facing this generation is the prohibitive price of property in the towns and cities where they work, with some considering moving away to a cheaper area in order to afford a home.

On average, the young professionals believe that moving around 37 miles away might make it affordable. 

The cost-of-living crisis is cited as the main barrier to home ownership, some admit they may be forced to consider drastic lifestyle changes to get on the property ladder. 

Over a third have given up holidays, and 30 per cent no longer socialise. Whilst, one in ten have given up dating or being in a relationship in order to afford a home. 

Two in ten ‘Guppies’ reveal they have considered buying with a friend, colleague or sibling as they could not afford to on their own.

Daniel Copley, consumer expert at Zoopla, said: ‘There is little doubt that younger people today face far more barriers to getting on the housing ladder than previous generations.

‘However, with the right knowledge and understanding of what your options could be, owning a home may be more in reach than some realise.

‘Most people in the survey say they can’t afford to buy a home where they live or where they grew up, so the reality for many is that they’ll need to look at alternative locations.’    

Guppies are also more likely to have resigned themselves to living with their parents than planning to buy – 14.4 per cent versus 14.1 per cent.

Rising house prices and high mortgage rates are blamed by around 50 per cent for not buying a home. 

Of those who are planning, or in the process of buying their first home, 85 per cent have made sacrifices to do so. For example, a fifth have given up on having any spare rooms.

Another 20 per cent are prepared to go further and would be open to buying a near-derelict home and doing it up whilst 19 per cent say they would consider building a home themselves.

Mr Opley said: ‘There are many schemes out there designed to help people get on the ladder…shared ownership schemes – where you own part of the home and pay rent on the rest – can be a great way to get a foot on the ladder.

‘Buying with a friend or a partner is one way to slash costs significantly and pool your salaries together. It may feel risky, but it’s actually very straightforward to get a legal document drawn up to enshrine what your share of the property is.’