The majority of first time buyers are funded by the bank of mum and dad
CML study finds two thirds require help from their parents to raise a deposit
November 27, 2012
Unaffordable house prices are forcing 66% of first time buyers to rely on their parents to raise a deposit. New figures released by the Council of Mortgage Lenders (CML) show that the lack of affordable homes has made it necessary and normal to depend on the wealth of parents to get onto the property ladder. In London this figure rises to 72%, unsurprising considering house prices are more than double the national average. The study found that the average age of first time buyers in now 29 nationally and 31 in the capital. Mark Prisk, the Housing Minister, called the housing market “dysfunctional” at a CML conference earlier this month. He added “We see 1.6million young people – people in their 20s and 30s – still living with mum and dad because they can’t afford their own place. That cannot be right.”
This month we published a report entitled “Death of a Dream” which found that home ownership in the UK has fallen to the lowest level since 1988. This is essentially due to a lack of affordability caused by a lack of supply, a restriction of credit, and property speculation, all of which drive up prices. This report forms the basis of our campaign to ensure that homeownership does not become the preserve of the wealthy.