Third of first-time buyers 'need parent's help'

Posted: 24 May 2007 10:56:20 GMT

Nearly a third of hopeful first-time buyers are getting financial help from their parents in order to pay for their first home, research suggests.

Nearly a third of hopeful first-time buyers are getting financial help from their parents in order to pay for their first home, research suggests.

According to a survey from the Council of Mortgage Lenders, 31 per cent of would-be home owners are taking advantage of 'the bank of mum and dad' in order to afford their first move on to the property ladder.

A further 23 per cent of those currently not considering buying said they would also need to financial assistance of their parents should they decide to purchase a property.

It seems that the younger the buyer, the more likely they are to look for parental assistance, with 40 per cent of those who entered the property market since 2004 saying that they borrowed money from family members.

Commenting on the findings, the CML's head of research Bob Pannell said that the trend was worrying for the long-term health of the property market, which relies on first-time buyers.

"Over the past few years, parents have already been providing significant help to younger homebuyers, and there is uncertainty about whether they can do even more," he said.

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