First-time buyers need a parental leg-up
Posted: 24 Aug 2006 12:28:44 GMT
First-time buyers desperate to get on the property ladder are increasingly relying on financial support from their parents, new research suggests.
A study by Abbey shows that 23 per cent of first-time buyers expect money from their parents as either a loan or gift to pay for their deposit.
Parents are also expected to shoulder payments for furniture and electrical goods in addition to acting as a guarantor for a mortgage.
Jeff Scott, Abbey's head of mortgages, stated: "Many first-time buyers need a significant leg-up from parents to have a realistic chance of getting on the property ladder.
"It is commonplace for parents to take their children back into the family home so that they can save for a deposit, as well as helping them out with cash gifts or loans."
Around 40 per cent of first-time buyers will live with their parents first in order to save money for buying a house.
A substantial ten per cent said they would stay at their parents' house for between one and two years.
In way of thanks for this benevolent and altruistic financial assistance, many young adults said they would help their parents out in retirement.
A notable 11 per cent of first-time buyers declared that they would let their parent move in with them when they needed to.