Young people despair of owning a home
Young Britons are giving up on the dream of homeownership, with half of the UK’s 20 to 45-year-olds professing to believe that we will become a nation of renters within a generation.
Following up on the ‘Generation Rent’ survey it carried out a year ago, the latest research from Halifax also reveals that just 14% of 20 to 45-year olds are saving for a deposit.
Meanwhile a third of parents are concerned about their own financial futures, with increasing demands of the Bank of Mum and Dad, as 44% have already lent their kids money for a deposit averaging £12,800, or plan to in the future.
Almost a quarter (24%) of parents have adult children who have moved back home to live thanks to the recession.
Stephen Noakes, mortgage director at Halifax, commented: “Our research shows that one year on, young people are still downbeat about their chances of owning a home, and we’re also seeing the impact this has on their parents’ financial future. Parents think that their kids could make cutbacks on holidays and going out in order to save for a deposit.
“However, despite concern for their own financial future, parents continue to stump up a contribution or welcome their children back to the nest to allow them to save.
Alison Park, head of society & social change at NatCen Social Research, said: “Parents are not very keen on their children borrowing money from family and friends as a way of contributing towards a deposit, while younger generations are much more accepting. Both generations make similar sacrifices to buy their first home, but today’s young people are looking more and more towards their family for support.”