Four in ten graduates need parental housing help
Research from Scottish Widows Bank reveals that 39% of graduates would not be able to get on the housing ladder without their parents helping them fund a deposit.
However, some parents are no longer willing to give their money away, instead expecting the money needed for a deposit to be paid back.
The total amount of money lent by the Bank of Mum & Dad over the last 10 years is £2.1bn, with the average loan standing at a sizeable £12,188. The average deposit for a graduate first time buyers currently stands at £16,219.
Richard Clark, head of product development and marketing, Scottish Widows Bank said “It is clear that it is becoming more and more difficult for graduates to get on the property ladder without any assistance and with rising interest rates and house prices they need all the help they can get.
“Rental rates are so high for some that it is very difficult to put enough money aside to save for a deposit meaning many graduates have to rely on their parents to fund that first step onto the property ladder. House prices and affordability are huge barriers for first time buyers but they should be aware that there are other options available to them – both lenders and the Government need to keep working on ways to solve this ever growing problem.”