A third of first time buyers move back in with their parents
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Version 0 of 1. Almost a third of parents said their children moved back home to save before they could afford their first home, according to new reseach. The Halifax Generation Rent report revealed that 28 per cent of parents said their children moved back home in 2015, compared to just 24 per cent in 2012. Parents are just as likely to contribute to the cost of a mortgage or a deposit for their children as they were three years ago. Some 26 per cent of parents put money in for a deposit and 6 per cent contributed to monthly payments. Meanwhile the proportion of parents who contributed to the cost of moving house has increased from 17 per cent in 2012 to 21 per cent in 2015. Parents who own property are also significantly more likely to contribute to a deposit for their children. Over half of parents who own admitted to contributing while only a quarter of those who rent did. Parents are also less pessimistic than their children about the chances of getting a mortgage as a first time buyer. A fifth of first time buyers said it was nearly impossible to secure a mortgage, while only 12 per cent of parents agreed. Halifax asked 40,000 20-45 year olds their perspective on the housing market over five years and over 4000 parents of 20-45 year olds over the last four years. “Whether it is giving their children a cash lump sum or providing a roof over their heads while they save, it is clear the bank of mum and dad will have a role to play in helping their children get on the property ladder for the foreseeable future,” said Craig McKinlay, a mortgage director at Halifax. |