Woman who bought house aged 25 on salary of £27k explains how she did it

For many young people in the UK, the idea of buying a house feels like a distant dream, but one woman was able to make it work as a solo buyer despite earning less than 30k.

Thanks to the government's latest 'Your First Home' scheme, first-time buyers will hopefully have an easier time when it comes to purchasing a house, while previous schemes have helped people to save towards a property of their own.

As landlords continue to push up rental prices and energy bills also soar during the winter, it's difficult for many to cope with the cost of living crisis, but 29-year-old Layla Phillips used a nifty technique to find her first home while on a wage of just £27k.

Phillips knew that she wanted a house with a garden for her two dogs but also knew that it would be years before she could save up for a deposit on her current salary, so she decided to look into shared ownership.

At the age of just 25, she was able to buy 25 per cent of a £265,000 property, which means that she continues to pay a small mortgage and a minimal amount of rent to the housing association each month - although it's far less than renting the same property would cost.

Layla decided to buy her home with the shared ownership scheme (SWNS)

She said: "I decided to buy with shared ownership, because I knew on my salary, I wouldn't be able to afford a full house.

"Because I'm a solo buyer, it would have taken me three or four more years to get on the property ladder, without shared ownership.

"My experience has been brilliant; the buying process was so simple, and the housing association were so helpful.

"Even though I rent part of it, it's still my own home, and I can do whatever I like with it."

Layla first started saving during the Covid pandemic when she was earning £22k a year, when she lived with her parents and gave them £150 each month towards rent, which allowed her to save a lot of what she earned with the help of the Government's Lifetime ISA.

She hopes to 'staircase' the home by eventually purchasing a higher percentage (SWNS)

She also got rid of any 'unnecessary spending' to ensure that she'd have as much as possible to put towards a deposit and by June 2023, Layla had saved up £6,625 for a deposit and £3,500 for furniture and solicitor's fees.

The local government officer said: "I wanted a house with a garden, as I've got two dogs, and I knew no lender would let me borrow enough money to buy a property like that, due to my salary."

In August 2023, she completed the purchase of her shared ownership, and now pays £305 a month towards her mortgage, and £576 a month in rent for the other 75% of the property.

Any money that she saves can now be put towards eventually buying more of the property until you reach 100 per cent, and you no longer have to pay rent.

She concluded: "My goal is either to have enough saved up after five years to staircase, or to sell this house, and buy something on the open market.

"I would 100 per ent recommend shared ownership to anyone looking to get on to the property ladder; without it I'd certainly still be living at home or renting privately."