Parents needed to fund first time buyers
Friday, 19th March 2010
With a record 4.5m people joining house waiting lists, buying a home has become a pipe dream for young Britons as new research suggests many cannot see themselves as homeowners within the next decade without a little help from mum and dad.
The YouGov survey, commissioned by the National Housing Federation, revealed that 86% of 18-30 year-olds, who do not own their own property, could not currently afford to buy a home if they wanted to.
A massive 83% of 18-30 year-olds, also thought buying a home was now more a dream than a reality and the Federation, which represents England's housing associations, blamed the gloomy outlook on a chronic shortage of affordable homes and a slump in the number of new homes being built.
As huge deposits are now needed to secure mortgages, young adults are becoming increasingly reliant on their parents’ help, with 54% admitting they would need financial aid from relatives or generous friends to buy a home, as young peoples’ chances of buying are at their lowest level since 1923.
In response, the Federation has called on politicians to commit to building more homes for first time buyers and address the crippling shortage, which has seen average house prices more than double over the last decade.
However, the downtrodden market could prove successful for rental landlords, as 70% of those surveyed said they would rent from a private landlord until they can afford to buy their own place.
Federation Chief Executive, David Orr, added: “Young people are giving up hope of ever being able to afford their own home and who can blame them?
“The simple truth is we, as a country, have failed to build anywhere like enough homes to meet demand, which has sent house prices rocketing over the last decade and well out of reach of most young people.
“The next government must view housing in the same terms as health, education and policing – and protect it from budget cuts, given the scale of the crisis.”
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