According to an article from The Telegraph this week, two thirds of first-time buyers are now relying on the ‘bank of mum and dad’ in order to jump on to the property ladder. Do you fall under this category?
In the past five years, it seems that the number of young professionals leaning on their parents for support has doubled. According to David Orr, CEO of the National Housing Federation, becoming a home owner is akin to an exclusive members’ club, as it depends on the wealth of the family you were born into as much as the hard work of the individual. Parents helping their offspring on to the property ladder are handing over an average of £23,000 – money that has often been put aside for their own retirement.
The report reveals that, on average, a first-time buyer now needs to raise a deposit of £30,000. According to Orr, property prices – which reached a seven-year high this summer – will be equal to 13 times the average salary by 2030.
However, according to the housing minister Brandon Lewis, these figures fail to consider the numerous government measures that have been introduced to help first-time buyers. This includes the Help to Buy scheme, which has assisted over 50,000 people who don’t have access to a large deposit.
Are you a first-time buyer? How have you found your experience of searching and raising funds for your new home?