23 September 2010

A recent study by the National Housing Federation (NHF) has shown that a third of middle-class parents are hoping house prices will fall, so that they can help their children to buy their first home.

The report also indicates that parents fear their children face a lifetime of renting in the current climate. This is in stark contrast to many current homeowners, most of which were able to buy their homes at relatively low prices.

The NHF also report that 60% of parents feel obliged to give their children money towards a deposit. The 'Bank of mum and dad' are expected to hand over at least £20,000 to each of their children to help them onto the property ladder.

The research is based on a survey of 500 middle-class parents with children between the ages of 20 and 30.

The average house price currently stands at £168,000, with first-time buyers generally requiring a deposit of at least 25% before they secure a mortgage deal. With the average worker earning £25,000, the price of the average home is over six times their salary.

David Orr, NHF Chief Executive, commented: "The majority of middle-class, first-time buyers cannot get a foot on the housing ladder without substantial help from their parents."

Mr Orr also added that a lack of building was holding up prices, and that it is shocking that first-time buyers can only purchase with the help of their parents.

 

 

 

Source: Daily Mail

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