A report by the Yorkshire Building Society has revealed that 59% of first-time buyers expect to receive financial help from parents or other members of their family.
According to the report, as many as 82% of these young adults believe it’s unfair that their generation is finding it harder to buy their first home compared to their parents’ generation.
66% expecting financial help from family to complete their purchase would feel guilty about doing so, and 59% are concerned it would negatively impact their parents’ future finances.
While the average property price for first-time buyers in England is £198,325, meaning a 10% deposit would set aspiring homeowners back nearly £20,000, 80% expecting help from parents and family expected the total value of this support to be less than this level.
The survey also revealed how 14% of adults aged 25-40 expecting help from family anticipated the value of the support they received to be more than £40,000, compared to just 5% of 18 to 24 year olds.
Despite angst over family support, young adults remain optimistic about the prospect of owning a property, with almost two thirds (65%) believing it was likely or very likely that they would become homeowners, and more than half (56%) admitting they are currently saving money to buy their first property.
David Robinson, National Intermediary Sales Manager at Accord, 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.
There are many parts of the country where average house prices dwarf earnings. Many first-time buyers turn to a broker for advice, so our survey results may help to remind them of the financial and moral dilemmas first-time buyers face when they help a client take their first steps on the property ladder.
Despite the challenges facing potential first-time buyers, our results paint an optimistic picture and show how young adults in the UK still value owning their home, even going as far as to suggest it would be the most important milestone in their life.”