Submitted by Administrator on Tue, 28/03/2017 - 13:53
Our new research on behalf of the Social Mobility Commission has been published this week showing that the number of first time buyers relying on the 'Bank of Mum and Dad' has hit a historic high. Drawing on Governmental and housing market data, Chihiro Udagawa and colleagues have analysed the recent pattern of parental help for first-time buyers. The research also includes trends and projections of such parental help.
The full report is available here.
It shows that:
- Young people are relying on the bank of ‘mum and dad’ to get a foot on the housing ladder. Over a third of first time buyers in England (34%) now turn to family for a financial gift or loan to help them buy their home compared to one in five (20%) seven years ago.
- In the UK, around a third of households with dependent children currently hold assets that could be used towards a deposit for the purchase of a home.
- First time buyers who receive money or a loan from their parents can buy 2.6 years earlier than those who do not. In London, this figure rises to 4.6 years.
- Our analysis projects that the number of future first time buyers will rise slightly in the short term, then fall gradually over the next 25 years. The speed and the extent of the rise and fall will be determined by the robustness of the economy.