Data from Tembo shows that over 55's earned 40% more from house price increases than aspiring first-time buyers earned at work

- Tembo, the first-time buyer mortgage specialists backed by Aviva and Nationwide announces the results of its impact and customer insights report for the first half of 2021

- Over the past six months, over 55s have earned £180 per day from property gains, compared to would-be buyers who have earned an average of £130 per day at work

- First-time buyers continue to face a monumental challenge to get on the property ladder, with house prices averaging seven times their average earnings.

- 68% of the first-time buyers Tembo has assisted in the same period would not have been able to buy a home without the support of their older family members

LONDON, July 29, 2021 /PRNewswire/ -- Tembo, the next generation lending platform announces its quarterly impact and customer insights report. Its data shows that first-time buyers continue to face a monumental challenge to buy a home of their own, with house prices averaging seven times their average earnings over the past 6 months.

Yet existing homeowners have continued to prosper with the ongoing house price boom. The average Tembo booster's home is now worth £398k. This equates to a cash gain over the past 6 months of £24k based on 6.3% average growth in house prices for the first half of 2021.

By comparison, aspiring homebuyers struggling to afford to buy their first home have earned an average of £17k from work over the same period.

Over the past six months boosters have earned £180 per day from the increase in their house prices alone. This compares to homebuyers who have earned an average of £130 per day over the six months from working in their jobs. As a result, the report surmises that boosters have earned over 40% more from their homes than homebuyers have earned from their jobs during the first half of 2021.

Whilst annual incomes have remained relatively flat, it is encouraging to see there has been an impressive rate of saving amongst first time buyers during the pandemic, with current average savings pots sitting at £26k.

Richard Dana, CEO and Co-founder of Tembo commented "Each day that goes by, the dream of homeownership gets that little bit further out of reach for younger generations. The over 50's own nearly three-quarters of all property wealth in the UK, whilst only accounting for a third of the population. This imbalance in wealth distribution across generations has been steadily increasing over the past 40 years, driven in part by the ongoing boom in property prices."

Tembo's family lending products, the Income Boost and Deposit Boost allow first-time buyers and families to lean on loved ones to help them onto the property ladder without causing them unnecessary disruption and risk or requiring a lump cash sum. 68% of its first-time buyer users would not have been able to buy a home without the support of their family through a Boost.

Richard Dana continues "There are many ways to help address the housing crisis facing young people in the UK. Many of those solutions, like building more homes, will take a long time to implement and are completely out of the hands of the families and young people who need them most. At Tembo we are proud to offer a service that can offer an immediate solution to would-be buyers, so they can begin building up equity in their own home. Our innovative boost products help families work together to transfer wealth from older to younger generations in a safe and ethical way to help them buy a home."

Based on 2,432 Tembo Money users 1 January - 30 June 2021. Full report here.

About Tembo
Tembo is a London based FinTech on a mission to transform consumer lending through the power of family. Starting with homeownership, its innovative range of family mortgages are helping first-time buyers get on the ladder faster and for less. Over 70% of its users to date wouldn't have been able to buy without these products, and on average they have saved £14,000 in interest charges. The brainchild of finance and technology expert Richard Dana, Tembo is backed by some of the UK's leading financial brands including Aviva and Nationwide.