First time buyers relying on parents to tune of £2billion a year

First time buyers relying on parents to tune of £2billion a year

More and more young people are being priced out of home ownership, leading to parents paying out an estimated £2 billion a year to help their children get on the property ladder.

According to research by NatCen Social Research, on behalf of housing charity Shelter, parents are facing growing pressure to help their children afford a home of their own.

Parents are contributing an average of £17,000 equating to £2 billion in cash added to the housing market each year from parents alone.

Between 2005 and 2009 17% of first time buyers relied on financial support from their parents in order to raise a deposit, compared to an average of 27% since 2009.

Additional research from Shelter found that in order to help support their children 22% of parents were dipping into their retirement pots.

Campbell Robb, chief executive of Shelter, said: “The fact that the Bank of Mum and Dad has to play such a central role in our housing market shows just how desperate the situation has become for a generation that’s priced out of a home of their own.

“Something is seriously wrong when people who work hard and save each month still have no hope of buying a home without significant financial support from their parents. And while parents want to help their children to get a start in life, with the growing squeeze on family budgets the reality is that the majority can’t afford to.

“Unless the government starts building the affordable homes we so urgently need, having a home to call their own will be a distant dream for the next generation.

“From young families priced out of homeownership, right through to those at the sharp end who are struggling to pay for their homes, all those affected by our broken housing system need the government to get on a grip on this problem once and for all.”

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