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KS5 · Year 12 / Year 13 · Lesson plan

UK housing options at age 21

A classroom-ready 50-minute KS5 lesson on UK housing options for 21-year-olds: renting, shared ownership, the LISA-funded first-time buy, parental gifts and loans, and basic mortgage affordability arithmetic.

Key Stage
KS5
Year group
Year 12 / Year 13
Age range
16–18
Duration
50 minutes
Subject
PSHE / Economics / Citizenship
Cost
Free

Learning aim

Students can compare renting, shared ownership, and full home ownership for a 21-year-old; explain how a Lifetime ISA accelerates a first home deposit; and apply basic mortgage affordability calculations.

CURRICULUM National Curriculum links

RESOURCES What you'll need

LESSON Lesson structure (50 minutes)

Opening
HOOK
Show three 21-year-olds: Aisha in London (rent £950/month flatshare), Ben in Manchester (rent £550/month studio), Carlos in Nottingham (lives with parents, saves £400/month). Ask: who is in the best position to buy a home by 25? Take 3 answers, then say: "It depends on more than just income — let's see why."
Direct teach
TEACH
Define the three main housing options: (a) Renting — flexible, no equity, market exposure. (b) Shared Ownership — buy 25-75% of the property, pay rent on the rest, government-backed scheme. (c) Full purchase — usually needs ~10% deposit + costs. Explain LISA: £4,000/year contributions, 25% bonus, must be used for first home up to £450k or age 60+ withdrawal. Penalty for other use = 25% on the full pot.
Pupils apply
GUIDED
Calculate Carlos's deposit timeline. He saves £400/month from age 21. Half (£200) goes into a LISA, getting +25% bonus (£50/month = £600/year bonus). Other £200 in regular S&S ISA. At 25 (4 years): LISA pot = £200 × 48 + bonus £2,400 = £12,000. ISA pot = £200 × 48 + ~10% growth = ~£10,500. Total deposit pot: £22,500. Mortgage at 4.5× salary £32k = £144,000. House price he can afford: £144,000 + £22,500 = £166,500. In Nottingham average prices: that buys a small flat or terrace.
Stretch / depth
CHALLENGE
Now Aisha in London: she earns £35,000 but rents at £950/month, leaving ~£300/month saved. Over 4 years: ~£14,400 deposit (no LISA bonus if not used). Average London first-flat: £350,000. Mortgage at 4.5× = £157,500. She's £178,000 short. Discuss: what could Aisha do? Move out of London, parental help, partner buying together, wait until 28-30.
Close
PLENARY
Each pupil writes one thing they'd advise themselves about housing decisions when they're 21. Share three. Land on: open a LISA the moment you turn 18, save consistently, consider regional choice, don't rush — renting is fine as a base.

DIFFERENTIATION Adapting for all learners

Support (working below ARE)

Focus only on the LISA bonus calculation. Skip mortgage affordability. Use simple "save £X for Y years = £Z deposit" without bonus complexity.

Stretch (working above ARE)

Pupils research Shared Ownership scheme rules in their region. Calculate the total monthly cost (rent + mortgage) for a 25% shared-ownership purchase of a £200,000 property and compare to renting equivalently.

SEND SEND adaptations

For pupils with autism: provide a visual decision tree "do you want to live somewhere fixed for 5+ years? Yes → buy. No → rent." For dyscalculia: focus on the qualitative comparison rather than detailed mortgage arithmetic.

EAL EAL support

Vocabulary: "deposit", "mortgage", "Shared Ownership", "Lifetime ISA", "stamp duty", "first-time buyer". Sentence frames: "I could afford a £___ property because my deposit is ___ and my salary is ___."

ASSESSMENT Assessment criteria

Pupils can: (1) compare renting, shared ownership, and buying; (2) calculate a LISA deposit pot over a stated period; (3) apply the 4.5× salary mortgage rule; (4) articulate the trade-off between London earnings and London prices.

HOME Homework pack

Three activities applying housing-decision math. ~40 minutes.

Regional comparison

What pupils do: Research average first-time-buyer property prices in three UK cities (your choice). Calculate the deposit needed (10%) and the mortgage required for each. Use £30,000 salary as the affordability anchor.

Expected output: Table with 3 rows and 4 columns (price, deposit, mortgage, affordability gap).

Marking guidance: 8 marks — 2.5 per city + 0.5 conclusion.

5-year LISA plan

What pupils do: Build a 5-year deposit plan using a LISA starting at age 18. Maximum contribution. Show monthly accumulation, bonus accrual, and total deposit pot at age 23.

Expected output: Monthly breakdown with annual subtotals.

Marking guidance: 6 marks — 3 for contribution accuracy, 3 for bonus accuracy.

Shared vs full ownership

What pupils do: In 250 words, compare Shared Ownership with full purchase for a 22-year-old earning £25,000. Cover: monthly cost, equity build-up, exit flexibility.

Expected output: 250-word comparison.

Marking guidance: 6 marks — 2 per dimension.

HOME Homework pack

Four activities to consolidate UK income tax mechanics. ~30 minutes.

Band calculation

What pupils do: For each gross salary, calculate the UK income tax (England/Wales/NI 2026/27 rates): (a) £15,000, (b) £30,000, (c) £55,000, (d) £85,000. Show the band split for each.

Expected output: 4 calculations with band-by-band working.

Marking guidance: 2 marks per accurate total (8 marks). Bonus 4 marks for correct band splits.

Personal Allowance research

What pupils do: What is the Personal Allowance? Why does it exist? Who loses it (the taper rule)?

Expected output: A 3-question short-answer response.

Marking guidance: 2 marks per accurate answer. 6 marks total.

Public spending

What pupils do: Find 5 different things UK income tax pays for. Order them by approximate share of government spending (biggest first).

Expected output: A ranked list of 5 spending categories.

Marking guidance: 1 mark per category, 1 mark per correct relative ranking. 8 marks total (e.g. NHS, pensions, education, defence, welfare).

Extension (optional)

What pupils do: Compare England, Scotland, and Wales income tax for someone earning £50,000. Which nation pays the most? Why?

Expected output: A 3-nation comparison table plus 2-sentence explanation.

Marking guidance: Up to 6 marks for accurate research and conclusion (Scotland pays more above ~£28k).

Family discussion prompt (safeguarding-aware)

Ask a working adult: "Name three things you think our tax money pays for." Compare their answers to what you learned in class.

SAFEGUARDING Classroom safeguarding

Note for teachers: Do not ask pupils about their own family's tax band, salary, or income. Frame all examples through fictional salaries. Be aware some pupils may be unsure of family financial circumstances — focus on the public-spending side of the lesson, not personal income.

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