New research has shown that almost 50% of First-Time Buyers (FTBs) report not being able to afford a home without help from their parents. Most FTBs, 92%, said they would happily accept such help, with those aged 18-24 most likely to; and those aged 35-44 most likely to, only if done in secret or via an inheritance….
The research found that 66% of parents who are homeowners would be happy to help, but 18% said no, citing a lack of means. Money matters can be very emotional, with 70% of young people jealous of older generations regarding the economic environment, and 83% of homeowners agree that the upcoming generation face more difficulties than they did. Additionally, 41% of homeowners admit to a sense of guilt over this.
First-Time Buyers currently expect to pay just over £270,000 for their first home, with many expecting to pay nearly nine times their average earnings to secure their first home. An outcome of the current housing situation is that 31% of 18 to 24 year olds say they expect to delay having children in order to increase their chances of buying a home.
It is clear that there is a distinct imbalance in wealth distribution across generations, with the average First-Time Buyer being unable to afford to buy without parental support.