Majority of FTBs rely on relatives to buy a home
Three in five first-time buyers depend on the bank of mum and dad in order to get onto the property ladder, according to research by Just Group.
In the last five years, 61 per cent of FTBs relied on financial help from relatives in order to purchase a property. In comparison, just 20 per cent of FTBs relied on financial assistance from relatives 30 years ago.
The firm adds that the bank of mum dad is predicted to provide £6.3bn worth of loans this year.
FTBs in London utilised financial support from relatives on average more than any other region at 56 per cent. The North East followed at 45 per cent and Yorkshire & Humber at 43 per cent.
Furthermore, the data outlines that 68 per cent of renters in their 20s aspire to purchase their own property, the highest amongst all age groups, the firm says. However, millennials are half as likely to own their own home by 30 as baby boomers were.
Just Group communications director Stephen Lowe says: “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.
“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.”
Thanks for sharing Jake Carter.