61% of first-time buyers relying on Bank of Mum and Dad
61% of first-time buyers who bought a house in the last five years relied on financial help from their parents or grandparents, according to research from Just Group.
This compares to only 20% of first-time buyers who purchased a property over 30 years ago, but is down slightly from a peak of 67% between 2009-2013.
The research also reveals the UK hotspots where the Bank of Mum of Dad is most called upon. First-time buyers in London and the North East are the most dependent on help from family compared to those in the Midlands and East regions who are almost half as likely to need this help.
Just Group’s communications director, Stephen Lowe, commented: “Over the last 30 years, approximately the time it takes to pay off a mortgage, the number of first-time buyers needing help from family to clamber onto the property ladder has tripled. Owning your own home is a deeply held ideal in our national psyche and today’s younger generation can see the financial and emotional benefits of getting onto the property ladder. But for many, unless they can count on financial help from family it seems to be slipping further out of their reach.
“The sharp increase in property wealth in recent years has fuelled debate on whether the older generation has benefitted at the expense of the young. Whatever your view, it’s clear the Bank of Mum and Dad has increasingly stepped in to help their children on to the property ladder. But how deep are the Bank of Mum and Dad’s pockets?
“People in their 50s are often referred to as the ‘sandwich generation’ – caught between supporting their children and their parents. For this group, planning for their own retirement is often pushed to the back burner while they deal with the day to day pressures – even though more than half of people in their 50s told us they are concerned about not having enough to retire on.
“It’s important that parents and grandparents balance their own long-term needs against their desire to help their family.”
Source: Financial Reporter