Anecdotally, we’ve all known that just getting onto the housing ladder has become increasingly difficult for young first-time buyers, especially for those who cannot call upon the Bank of Mum & Dad, but now the statistics have been produced to prove it.
The Social Mobility Commission report claims to show that 30% of first-time buyers are now only able to achieve their dream of home ownership with the help of loans from family, thanks to the consistent hike in house prices and the requisite deposit needed to purchase. What’s more, that figure has leapt from 20% since 2014.
In addition, the report also shows that the age at which home ownership is attained is on the up too. It declares that only 10% of those in the 20-24 age group own their own home – that compares with 39% back in 1990. For the 25-29 age group, home ownership has dropped from 63% to 31% in the same time period.
The situation has been exacerbated by a combination of low interest rates and a shortage of houses. which has helped push house prices up. Depressingly, despite the current massive house-building push, the Social Mobility Report only sees things getting worse, predicting that by 2019 – that’s just two years away – the number of first-time buyers needing parental help will have risen to 40%.