More than half of people think parents should help kids onto the housing ladder
The majority of people (53%) think older family members should offer financial assistance to help their children or grandchildren buy their first home, according to the Building Societies Association (BSA).
Just 28% don’t think parents and grandparents should have to help.
The research highlighted that the biggest barrier to homeownership is getting enough money together for the deposit.
Over half (58%) of would-be first-time buyers do not expect any financial assistance from their older relatives. However, 71% of parents do expect to provide some financial help to the younger generation.
Nearly half (49%) of parents said they expect to leave money in their will to children to help them to buy a home, but less than one in three first-time buyers (29%) are expecting it.
Four in 10 parents are expecting to give their children money while they’re alive, but only 24% of first-time buyers are expecting it. Nearly seven in 10 expect to fund their deposit on a home themselves from their savings.
Paul Broadhead, head of mortgage and housing policy at the BSA said: “With house prices rising considerably more than inflation and wage growth, it’s not surprising that first-time buyers find raising a deposit the most difficult aspect of getting on the property ladder and something it is hard to keep pace with. But it’s clear that many families are more willing to share their wealth and give financial help than the younger generation appreciate.
“Perhaps families should use the festive period to talk candidly to each other about their future plans and aspirations and how best to use their inter-generational wealth. It could be the best present under the tree for all!”
Nigel Purves, CEO of Wayhome added: “Our housing market is not fit-for-purpose. The Building Societies Association (BSA) figures highlight a real mismatch in expectations when it comes to supporting more first-time buyers.
“While almost three quarters of parents expect to put money towards deposits, younger buyers are either not expecting this to come through or don’t feel they can ask for it.
“Raising enough for a deposit has always been the biggest hurdle for those starting out, and with the average UK property now costing £270,000 that goal is sliding further out of reach. To reinstate confidence next year, we need an upfront commitment from all stakeholders to support alternative routes to homeownership.”