A quarter of young reliant on parents for deposit

Posted: 20 Oct 2006 10:37:58 GMT

A quarter of all 20 to 35-year-olds are banking on their parents to cover a significant amount of their deposit when they buy their first home says a new survey

A quarter of all 20 to 35-year-olds are banking on their parents to cover a significant amount of their deposit when they buy their first home says a new survey.

One in ten also said that they hope their parents will risk their own equity by guaranteeing their mortgage, said the Skipton Building Society research.

Two thirds said that they could not cover the costs of buying a home due to rapidly rising house prices, although half also said that they had difficulty saving.

"Faced with industry figures - which put the average cost of a house in the UK at nearly £200,000 - climbing onto the property ladder must seem as daunting as climbing Everest," said Jennifer Holloway of Skipton Building Society.

"Add to that the rising costs of living and renting in the meantime and it is little wonder first-time buyers are looking to their parents for financial help."

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