Young homebuyers admit to guilt over reliance on ‘Bank of Mum and Dad’
Young adults feel guilty about receiving help from the ‘Bank of Mum and Dad’, according to a new report from Yorkshire Building Society.
The results revealed that 59% of respondents expected to receive familial assistance for their first property – double the number of first-time buyers (26%) who received support with their deposits in 2016.
Two-thirds of these would-be UK homeowners who expected financial assistance admitted that they feel bad about taking the cash. Despite the guilt, however, getting a helping hand from the ‘Bank of Mom and Dad’ is quickly becoming the norm.
With an average price tag of £198,325 for a first house in England, a 10% deposit entails an almost £20,000 upfront cost. The survey found 80% of respondents expect the total value of familial support to be less than this amount, but 14% of respondents aged 25-40 expected the value of financial support to be above £40,000, compared with 5% of those aged 18-24 who expected such a large contribution.
Part of the reason these borrowers feel guilty is driven by concerns over impacts on their family. The survey found that 59% of those expecting financial support worried about harming their parents’ future financial prospects by asking for help.
The bright side
However, guilt and gloom is not all that would-be buyers are feeling: Almost two-thirds of those surveyed (65%) are optimistic, believing that it’s likely or very likely they will become homeowners at some point.
Over half (56%) said that owning a home is a major marker of life success (compared to 63% in 2016), and 56% said they’re currently saving for their first house.