A new report shows that one in three first time house buyers needs a gift or loan from their parents before they can afford to buy. And another one in ten uses money they have inherited. The Social Mobility Commission’s research has found that the number of people using the “Bank Of Mum and Dad” has risen from 20% to 34% in the last seven years.
CityAM reports –
“The results of the study have been slammed by former Labour MP and chair of the commission Alan Milburn, who said “The way the housing market is operating is exacerbating inequality and impeding social mobility.” … First time buyers who received parental help were able to buy a home an average of 2.6 years earlier than their counterparts who did not benefit from similar arrangements. For Londoners, the gap was wider, setting those whose parents cannot help them 4.6 years behind their peers… Researchers predict that the number of first time buyers will rise slightly in the short term, then fall over the next 25 years. If economic activity weakens, the proportion of first time buyers relying on parental support could rise to nearly 40 per cent by 2029. However, if economic activity increases, that proportion could peak by 2022 before falling again.”