The “bank of mum and dad” appears in full swing with more parents helping their children stand a chance of getting on the property ladder by either putting a roof over their heads whilst they save for a deposit and / or contributing financially towards deposits, stamp duty fees and moving costs.
With an average deposit required of £9,000, it is not hard to see why first time buyers are struggling.
Moving back to the nest
Halifax carried out a survey of approximately 8,000 young people and 1,000 parents to gain statistics into how the housing crisis is affecting first time buyers and the families thereof.
28% of parents are in fact allowing their adult children, aged 20 – 45, to return home to save the funds required for a deposit, up from 24% since three years ago.
One in four parents were also lending or donating money to their children to help with the deposit and one in five helped with moving costs such as stamp duty and house furnishings.
Help to Buy Scheme
In recent weeks the government published that their Help to Buy Scheme had assisted 100,000 people with gaining their first home, 80% of which were first time buyers.
Other incentives are also coming into force such as the Help to Buy ISA.
Regardless, one fifth of 20-45 year olds who don’t own their own property see getting onto the UK property ladder, “a virtually impossible task“.