More than a quarter of first-time buyers used bank of mum and dad
A consequence of ever-rising house prices seen across England is that the bank of mum and dad has never been so popular. As first-time buyers struggle to find ever bigger deposits required, it’s the bank of mum and dad buyers are turning to more and more. That’s what the government’s English housing survey 2014-15 reveals as it compares its current figures with those of previous years.
It showed that in 2014-15, 27% of first time buyers turned to their parents for financial help compared to 21% twenty years ago. Another significant change is that 80% of all first-time buyers during 2014-15 were couples whereas 20 years it was 63%. In the last ten years the number of people buying a home has actually fallen from 815,000 in 1994-95 to 564,000 over 2014-15. These figures all give an indication why people are turning to the bank of mum and dad.
Private renting the only alternative.
For those unable to turn to the bank of mum and dad, it means having to stay in private rented accommodation. Ten years ago only 11% of households were privately rented, now the figure is 19%. This amounts to 4.3m households renting from private landlords.
The chief executive of the housing charity, Shelter, Campbell Robb, says that the survey results are an indication of the severe housing shortage the country faces: “For those on ordinary incomes and not lucky enough to be able to turn to friends and family for financial help, they’re left with no option but to look forward to expensive, insecure renting.
“The results of this survey are a stark reminder that the severe shortage of affordable housing in this country means having your own home is fast becoming out of reach for millions.”