Young people increasingly leaning on the bank of mum and dad to buy homes

by Gary Whittaker

The number of young people who expect they will need help from their parents when it comes to raising a deposit for a mortgage has doubled in the last year, according to a new report which shows the bank of mum and dad is becoming the norm. 

Data released by Yorkshire Building Society shows that although the majority of young people (66 per cent) said they feel guilty about the prospect of having to borrow or rely on a gift in order to be able to buy a home, it's simply becoming a reality. 

Of those aged between 18 and 40 who are looking to buy a home, as many as 59 per cent said they would need to borrow or get a gift from family members in order to be able to secure a deposit for a mortgage. 

Most of those who borrow are not simply happy to take hand outs, however. The survey shows that of those who want to buy and need help to do so, some 59 per cent said they are worried about how it will affect their parents' finances in the future. Meanwhile, another 82 per cent said they find it unfair that their generation faces such hardships when it comes to buying a house when compared to those who came before. 

"In what is a tough environment for young aspiring homeowners, the bank of mum and dad continues to support young peoples’ dream of buying their first home," said David Robinson, national intermediary sales manager at Accord, which carried out the research for Yorkshire Building Society.

"There are many parts of the country where average house prices dwarf earnings. Many first-time buyers turn to a broker for advice, so our survey results may help to remind them of the financial and moral dilemmas first-time buyers face when they help a client take their first steps on the property ladder," he added. 

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05-October-17General Lettings News