64% of FTB's have parental help

Graham_Devon

And so too, do 26% of second movers.

These sorts of statistics show you the true picture (IMO). Add this on to the small numbers of people using the government homebuy assistance scheme and the number of FTB's buying on their own steam much be down at around 30%.

At 64pc, the proportion of buyers tapping the “bank of mum and dad” was almost double the 30pc to 40pc level before the credit crunch struck in 2007. A quarter of “second steppers” were also in need of assistance, the CML said.

The figures illustrate the difficulty young buyers are having to get on the property ladder in the face of demands for large deposits, compared with the easy money that was available in the boom. The CML added that parents were reaching the limits of what they could do to help, potentially blocking an even larger proportion of younger buyers from owning a home.

“We estimate that last year only 36pc of first-time buyers got on to the housing ladder under their own steam. This contrasts with well over 60pc before the credit crunch, when deposit requirements were more modest,” the CML said.

It added that “this problem of insufficient savings for a deposit is by no means limited just to first-time buyers”, as 26pc of existing home-owners also claimed “they were likely to need help from family or friends”, the survey found. “This provides clear evidence that second steppers and others also face challenging affordability hurdles,” the CML said.

The findings followed official figures showing that 4.7m retired householders own outright properties worth £770bn, an average of £164,000 each. However, they are struggling to release funds for children.

Of course, the CML will use this as a reason for more government subsidies, but the market will soon be a case of simply how lucky you are to have parents able to help you out.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10102038/First-time-buyers-more-reliant-than-ever-on-mum-and-dad.html

setmefree2

FTB's have parental help

Parents have always helped. For example, my grandfather gave my father his first deposit, my parents gave us our first deposit and we will help our kids in the same way....

Why the surprise?

Percy1983

setmefree2 wrote: »

Parents have always helped. For example, my grandfather gave my father his first deposit, my parents gave us our first deposit and we will help our kids in the same way....

Why the surprise?

We got £600 in total, £500 towards the deposit which we keep offering to pay back and being refused and £100 towards a freezer.

I guess in the swing of things thats more of less no parental help as it wasn't really needed.

I will say I know a girl who got her deposit gifted by her dad and now she is obsessed with how much her house it worth, I remember when they dipped she was phoning estate agents on a weekly basis hoping they would tell her thye had gone back up. With that her mum still makes her dinner for work and her dad gives her lifts everywhere.

I will say just going from people I know the people who have had no help seem much more grateful for what they have.

Mr._Pricklepants

Wow Percy, that's amazing.

wotsthat

Graham_Devon wrote: »

Of course, the CML will use this as a reason for more government subsidies, but the market will soon be a case of simply how lucky you are to have parents able to help you out.

We never got any help whatsoever and just got on with it. Never felt in any way unlucky. Then again we had access to one of those reckless loans that used to be called a 95% mortgage.

I'd have no qualms about helping my kids out though. If you spend time accumulating wealth why wouldn't you use it to help your kids & grandchildren? Not much point otherwise and it'll encourage the little mercenaries to pay a visit every now and again.

wotsthat

Percy1983 wrote: »

We got £600 in total, £500 towards the deposit which we keep offering to pay back and being refused and £100 towards a freezer.

They did have to put up with listening to you until you were 30 complaining about how they, with their low skills and lack of financial acumen, could buy a house and you couldn't.

Their tongues must be permanently scarred from having to bite them.

Percy1983

The bigger problem is once upon a time if your parents could help it made it easier, if they couldn't it was still possible.

These days to many its impossible without parental help, to which not all parents can help.

You ability to own a home should not be decided by the decisions your parents made.

wotsthat

Percy1983 wrote: »

You ability to own a home should not be decided by the decisions your parents made.

It's always been good advice to choose your parents wisely.

Graham_Devon

setmefree2 wrote: »

Parents have always helped. For example, my grandfather gave my father his first deposit, my parents gave us our first deposit and we will help our kids in the same way....

Why the surprise?

Yer

The article was pointing out the increase from 30-40% getting help, to 64% getting help. Was also point out that second steppers are now having to turn to help from parents.

The news isn't that "FTBs get parental help", but thats a great way to ignore the message.

ukcarper

Graham_Devon wrote: »

Yer

The article was pointing out the increase from 30-40% getting help, to 64% getting help. Was also point out that second steppers are now having to turn to help from parents.

The news isn't that "FTBs get parental help", but thats a great way to ignore the message.

Is it surprising as you now need a larger deposit.

Graham_Devon

ukcarper wrote: »

Is it surprising as you now need a larger deposit.

No, it's not so much surprising.

I don't know why people assume it has to be a "surprise".

It's stating someone about the market. You could either say it's because people need higher deposits, or you could say it's because house prices are high leading to needing bigger deposits. That bit is pure chicken and egg.

One thing it does state is that more and more people are having trouble buying their first house....and arguing over the reason and what came first doesn't deride from that.

You may not want to hear it, which may be a reason for the responses such as "ftbs have always had help" and "is this a shock"? Simply avoids the point about the pace of increase in FTBs needing support.