Date: Friday 27 January 2012
Wannabe first time buyers are turning to their grandparents for help with a deposit – because the bank of mum and dad has hit upon hard times, it emerged yesterday.
A study carried out among 1,000 young adults found one in ten have turned to nan and granddad for financial help to get their foot on the property ladder.
Additionally, millions of young adults struggling to get a foot on the propery ladder are staying at home with their parents, with many sticking at ‘hotel mum’ for an extra decade longer than they intended to, according to the survey by Taylor Wimpey.
It also emerged most feel their relationships with their parents are suffering because they are still living at home.
Furthermore, the results show that although 'hotel mum' may still be open for business, the 'bank of mum and dad' has hit upon hard times. Sixty-five per cent of parents said they simply didn't have the spare funds to help their children with a deposit for a house, with nearly a quarter admitting that they were struggling enough to keep themselves afloat.
Property guru Phil Spencer, who has launched a series of video guides to help first time buyers, said the research highlights the challenges faced by those trying to get on the property ladder, but insists that there is light at the end of the tunnel.
He said: "Living with parents on a temporary basis can be a great way to relieve some financial pressure while saving for a deposit, but if you take your eye off the end goal, you could find yourself stuck there.
"Make sure you have a proper savings plan in place, consider buying with friends or family and find out about the range of schemes from the government and house builders, which means you may only need to save a five per cent deposit.
“Interestingly, the survey did show that we are still a nation that aspires to home ownership.”
The survey revealed only seven per cent of respondents enjoyed living at home with their parents. One in ten feared they could be in their late 40s or early 50s before they were able to move out.
However, it seems some first time buyers are not helping themselves when it comes to getting on the property ladder. Thirty five per cent said they were not prepared to give up holidays while they saved for a deposit and more than a quarter said they would not give up buying new clothes or eating out. Only one in five said they would consider buying with friends, taking in a lodger or moving to a cheaper location.
Eighty-four per cent of people aged between 18 and 25 said they believed property was still a good long term investment and, in terms of their priorities in life, one in three put owning their own home above getting married, having children and a successful career.
* Phil Spencer's Buying Your First Home guides, in conjunction with Taylor Wimpey, are a series of videos covering everything from knowing the right time to buy to financing your move.