A growing number of people between the ages of 18 and 40 are expecting to need help from their parents to raise a deposit to buy their first home. New research has found that more than double the number of people in this age group believe they’ll need assistance in 2017, compared to the number who had support with their deposit in 2016.
A survey by Yorkshire Building Society revealed 59 per cent of adults in this age group are expecting to receive some kind of support from their parents or another family member to help them get on the property ladder.
However, 66 per cent said this made them feel guilty, while 59 per cent of those expecting some support are concerned about how it could impact their parents financially in the future.
Senior manager at Yorkshire Building Society Simon Broadley explained that with house prices dwarfing earnings in many parts of the UK, there is a lot of guilt associated with accepting help.
“Our survey shows how the financial and moral dilemmas facing first-time buyers remain acute regardless of whether they are fortunate enough to have parental support available,” he stated.
The average house price in England now stands at £198,325, which means a ten per cent deposit equates to nearly £20,000.
Despite the hurdles though, 65 per cent of those questioned said it was likely or very likely that they would get on the property ladder. What’s more, 83 per cent of people felt that buying a property was a good investment.
There is some good news for first-time buyers though, with Property Wire reporting that the latest Mortgage Monitor report from e.surv showed that 20.3 per cent of mortgages granted in August were for buyers with small deposits, who are usually getting on the property ladder for the first time.
Estate agents like Beercocks can help FTBs find and buy their first property with ease. We provide a free cost of moving appointment so you know how much you’ll need to budget for and we also provide free valuations of properties to help you make key decisions. Call us today to take advantage of our vast local knowledge.