For first time buyers, getting a foot on the first rung of the property ladder isn’t an easy task. House prices are sky high, and very few younger people have the necessary savings required to obtain a reasonably priced home loan. So what’s the solution? The answer…good old mum and dad.
According to a new report almost 30% of first time buyers are expecting or have been told, that they will receive financial assistance from their parents in order to make that first step. Apparently, the prospect of purchasing a home is a major concern for over 60% of people in there mid to late 20’s. Current market conditions do not favour the first time buyer, and a parental loan is viewed as the most financially viable option (if they can afford it, of course).
The general consensus indicates that feelings towards first time buyers are mutually that of concern. Almost 80% of people believe that today’s financial climate has made purchasing a home almost impossible, as a result more and more parents are helping their children to fund their first purchase, as they can see no other alternative. The report further suggests that parents in London are most likely to help their children, with over 30% of first time buyers stating that their parents played a major part in funding their first purchase.
