Son or Daughter Knows Best
A recent Halifax Generation Rent Report has found a significant difference in opinions regarding the first-time buyer market between prospective first-time-buyers and their parents.
As it currently stands 12% of parents believe it is ‘virtually impossible for first-time buyers to obtain a mortgage’. While 21% of prospective first-time buyers believe this to be the case.
The Generation Rent Report is based upon data compiled from interviews with over 40,000 20-45 year olds over five years, and over 4,000 parents of 20-45 year olds over the last four years. The data has shown that in recent years, parents and Generation Renters were a great deal more pessimistic about the first-time buyer market. 21% of parents and 29% of potential first-time buyers believed it was virtually impossible in 2012.
There has been a recent shift towards more optimistic attitudes thanks to the continued improvement of the nation’s economy, however, a fifth of Generation Renters still believe it is virtually impossible for them to get onto the property ladder.
The report also highlighted the fact that a fairly hefty percentage of first-time buyers are actually moving back in with their parents in an attempt to get the money together for a deposit. The figure stood at 24% in 2012; this has increased to 28% this year and the figure looks set to continue to rise in the future.
There is also an indication that direct parental support towards the costs of a mortgage have remained steady and this also looks set to continue into the future. There has also been an increase in the number of parents assisting their offspring with the actual costs of moving house.
It has become apparent that if future generations are to prosper, then the continuation of homeownership as the norm in the UK is essential. This is emphasised in the fact that 57% of parents who own a property have the intention of helping their children with a deposit to get onto the property ladder, compared to only 24% who are currently renting.