More than one third of Britain’s first-time buyers relies on a loan from parents to be able to make their first step onto the property ladder, the Social Mobility Commission has found.
The number of those banking with Mum and Dad to make their dream of owning their own home become a reality has increased by more than 14% over the last seven years, up from 20% in 2010.
Those who were lucky enough to get some support from Mama and Papa in their quest to buy a home were, on average, able to do so 2.6 years earlier than their less lucky counterparts.
When looking at the capital, the gap becomes even wider. Londoners who can’t rely on their parents to support them financially when buying a home will on average need 4.6 years longer to do so.
The researcher responsible for the paper estimated that the number of first-time buyers will rise slightly in the short-term before it falls again over the next 25 years.
If economic activity was to weaken, the number of first-time buyers dipping into the bank of Mum and Dad could increase to almost 40% by 2029. If, however, economic activity was to increase the numbers could peak by 2022 and start dropping again after that.
Dr Paul Sanderson of Anglia Ruskin University and lead author of the report, said:
“Going forward, the gap is likely to continue between those in the UK who can acquire that most significant of financial assets, the family home, and those who cannot. Only better-off young people and those who have parents who have already accumulated housing wealth are likely to be able to consider home-ownership without radical changes to the housing market.”
