66% of buyers using Bank of Mum and Dad feel guilty
Two-thirds of house buyers between 18 and 40 years old feel guilty about getting help from family to purchase their first home, according to a report.
Last week, we wrote about the government offering an extra £10bn in funding for the Help to Buy scheme. This will be outlined on 22nd November in the Budget to boost homeownership which is almost 10% on 2003 numbers.
But, as we’ve seen in recent years, the Bank of Mum and Dad - even the Bank of Gran and Grandad - is increasingly important for those taking their first steps. With the average deposit of £21,600 on a property, the £6.5bn handed out by parents means they’re the equivalent of the ninth-biggest mortgage lender in the country.
Numbers continuing to rise
In 2017, the number of young adults in the UK needing help is expected to double from last year in an analysis from the Yorkshire Building Society. On top of this, three-in-five (59%) hopeful homeowners expect handouts to buy a property and 29% of buyers got support for their deposit in 2016.
The Senior Manager at Yorkshire Building Society, Simon Broadley, said:
In what is a tough environment for young aspiring homeowners, the ‘Bank of Mum and Dad’ continues to support young peoples’ dream of buying their first home.
But while it’s clear that parents are willing, where they can, to help their children get on to the property ladder, the burden of how it could negatively impact their family’s finances is leading many young adults to feel guilty about accepting help.
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