News / Arts
Bank of mum and dad out of cash for homebuyer
Two thirds of parents in the West cannot afford to save any money for their children’s future, making it even less likely that the next generation will be able to buy their own homes.
Housing charity shelter said today that 67% of parents surveyed could not set aside any savings for their children.
Of those who were able to help their offspring jump onto the property ladder, a fifth used savings set aside for retirement or elderly care, while more than a quarter had cut back on their own day to day spending.
is needed now More than ever
Across the UK, parents helping their children with a deposit to get onto the property ladder give an average of £23,000, the research shows.
But even with this windfall, Shelter found 94% of properties for sale in the region are unaffordable for the average working family looking to buy their first home, even assuming that they were able to provide an 18% deposit – the average size deposit for a first-time buyer.
The charity is warning that, unless politicians commit to building more affordable homes, young people and families who can’t rely on help from their parents will find that a home of their own becomes an ever more distant dream.
Campbell Robb, Shelter’s chief executive, said: “When parents are having to hand over such vast sums of money to help their children afford a stable home, it is yet another sign that the housing market is spinning out of control. And the reality is that most parents could only dream of giving their children £23,000 to help them onto the housing ladder.
“A whole generation of young people are working hard and saving hard, but our desperate shortage of affordable homes still leaves them priced out. Instead they have to choose between becoming part of the ‘clipped wing generation’ stuck living in their childhood bedrooms, or ‘generation rent’ paying out dead money to landlords.
“A pay-out from the Bank of Mum and Dad can’t be the next generation’s only chance of affording a home of their own. Parents understandably want to help their kids to get a start in life, but with many feeling the squeeze themselves this is only an option for a lucky few.
“Schemes like Help to Buy might be heralded as the solution, but in reality risk making the problem worse by inflating house prices further. Instead, politicians need to give back hope to all those left priced out by building the affordable homes they are crying out for. It’s time for politicians from all parties to turn their talk into action.”
Our top newsletters emailed directly to you
