Alex Evelyn: Homeownership could turn a disaffected generation Conservative

Alex Evelyn is a former Kettering Town Councillor and Deputy Mayor and former North Northants Unitary Councillor.

The beauty with conservatism is that our thinking is timeless and naturally goes with the grain of human nature: a focus on self-reliance; a desire to own property; an eagerness for the next generation to do better than the last.

Parents generally have a basic hope that their child climbs higher and begins life with fewer hurdles. However, it can appear to many that the social contract between effort, work and reward is breaking down, causing frustration, and leaving many to ask: What is the point?

In some respects, this may explain the success of Reform UK and their ability to capture the zeitgeist of public opinion. Since the 2024 General Election, national polling continues to place Reform UK ahead of all the other parties. Interestingly, the party also appears to poll well with under 35’s. A More in Common poll indicated that among the 25-34 age group support for Reform has reached 23 per cent, while the Conservatives would be lucky to get 9 per cent.

Now while there may be a multitude of reasons why young people are attracted to Reform: they are new, and their mixed and highly targeted messaging represents an alternative to a perceived political consensus of failure. We have a political opportunity to (re)create a new generation of Conservatives who are the proprietors of capital; rooted in our communities; have a sense of belonging and are invested in the improvement of their neighbourhoods.

To understand the challenge that we face to make British conservatism appealing again, let’s use the purchase of a house as a useful case study. Where I live, in Northamptonshire, the average house price is £286,000 (for the year ending March 2025). The gross average wage for a 22-29 year old in the East Midlands is £30,399, which equates to an annual take home pay of £25,407 (a monthly pay packet of  £2,117, less £14 for those paying a student loan).

Although other mortgage products are available on the market, it is generally assumed a minimum deposit of 10 per cent is required before a mortgage application is considered. Therefore, a young person in Northants will need £28,600 before they can even take their first step onto the property ladder, and without financial support from family or others that first major step into adulthood can seem like a milestone always just out of reach. Not to mention the broker, solicitor and other associated fees that can average £2,000.

If we assume an individual or couple could save £200 per month it would take roughly 12 years to secure a deposit. Research by Charter Savings Bank finds that the average saved each month for individuals in their 20s is £191. While Which, a consumer rights organisation, finds that people in the East Midlands have, on average, a Cash Isa holding of £5,794. This puts us at the bottom half of the Isa saving league table, with London topping the poll at £10,216. Put another way, that is half a generation spent, at best, to raise the funds to properly begin adulthood. Keeping in mind that with inflation and the upward trend in house prices, a deposit at 2025 prices would probably be insufficient by 2037.

If we look to the past, we find that: i) the age when people purchase their first property; ii) the deposit required; iii) the time to save; and iv )the percentage in receipt of financial help continues to increase:

*Data obtained by Commercial Finance Network

While the upward trend of all those figures is disappointing and makes homeownership appear to be the preserve of the professional class or those with the cushion of the bank of mum and dad, the most troubling statistic relates to the ‘percentage in receipt of financial help’. This means we are potentially locking out 50 per cent of our fellow citizens from the joy and safety that having a home brings. During party conference, Kemi Badenoch made a positive step in the right direction by committing the next Conservative government to abolishing stamp duty. We should continue to reach out to young voters and ‘make a comprehensive offer’ to the next generation of homeowners.

With this in mind, the Conservatives ought to consider making the first two years of working life completely tax free: that means no income tax; no National Insurance and everything that you earn is yours! The untaxed income should automatically be transferred into a new savings product aptly called the ‘Early Earners ISA’, adopting similar rules that have been applied to the ‘Help to Buy ISA’ (launched in 2015) and the Lifetime ISA (launched in 2017) for early withdrawal.

The impact of implementing a policy such as this has multiple benefits: i) instilling a saving culture very early on in a person’s working life; and ii) actually rewarding work where they can see their income earn money. It will also serve to remind citizens of the old saying: “There is no such thing as public money, there is only taxpayers’ money”.

It is bizarre that ‘Rachel from accounts’ wants to attack ISA savers (the most popular saving instrument in the UK) rather than promote and extend their use. But should it really surprise any of us when the entire mantra of socialism is to keep its citizens in bondage to the state?

We have to remember that our ideas and our solutions work, but they can only deliver if they have popular appeal and ensure the link between effort, work and reward is restored. A savings product such as an ‘Early Earners ISA’ could be a positive step in the right direction and start to rebuild trust with the aspirant homeowner class once more.