With young people struggling to get on the housing ladder, around 54% of families will use cash savings to help relatives purchase their first house this year.
Loans from “The Bank of Mum and Dad” have been steadily increasing over the last few years, and this latest figure from Aldermore’s First Time Buyer Index shows that over half of families will access cash savings to help relatives get onto the housing ladder, with 24% releasing equity in their property to help.
First-Time Buyer Struggles
According to the director of Aldermore, a typical new buyer needs approximately 18 years to save for a deposit on a house, which is an increase from just 3 years compared to the mid-90s. 26% of first time buyers claim that raising enough cash for a deposit is the biggest obstacle to buying their first home, meaning that is becoming more and more common for younger people to turn to parents and relatives for cash loans or gifts.
