A new government housing survey has revealed that more than one in four first time buyers now rely on their parents for a deposit in order to get their first step on the property ladder; a figure that has risen six per cent since 1994.
The same survey also showed that less that one in seven first time buyers now buys a property on their own, rather than with a friend or partner. Just two decades ago that figure stood at more than one in four.
Danny Luke, Quick Move Now’s managing director, commented:
Home ownership is looking less and less achievable for many younger people.
The average house price has risen from £52,000 in 1994/1995 to just over £210,000 in 2016. Whilst wages have risen during that period, they have failed to keep up with the high level of growth seen by the property market, leaving many would-be home owners with a significant shortfall in affordability.
Those yet to secure a foot on the property ladder also have to contend with rising rental prices. Research by the Resolution Foundation estimating that those born between 1981 and 2000 will have spent an average of £53,000 in rental costs by the time they reach the age of 30, leaving them little expendable income to be able to save towards a house deposit.
As a company, we help a lot of homeowners looking to downsize their property in order to release equity, and in many cases that equity is used to help their children secure their first step on the property ladder.
Parents are conscious that property is much less affordable for their children than it was for them, and as such are keen to help their children as much as they can. In a time of uncommonly low interest rates, property still remains a relatively secure investment.
As a result, many parents are keen to help their children benefit from an early inheritance in order to be able to invest in property rather than keep paying expensive rental costs.
If you’d like more information about how Quick Move Now could help you release the equity tied up in your property with a quick, hassle-free property sale, call free on: 0800 068 3366 or fill in a free, no-obligation estimate form.