Buying a home has become a ‘distant dream’ for many first time buyers if they don’t get financial help from their parents, a new report claims.
Research for the public-funded Social Mobility Commission found 34% of first time buyers now rely on their families cash to get themselves on the property ladder.
Five years ago this figure was just 20%, showing how much the situation has worsened, with those from poorer families now face being locked out of the housing market.
Former Labour minister Alan Milburn, who chairs the commission, said: “Home-ownership helps unlock high levels of social mobility but it is in free-fall among young families.
“Owning a home is becoming a distant dream for millions of young people on low incomes who do not have the luxury of relying on the bank of Mum and Dad.”
Mr Milburn added: “A major national effort is needed to expand opportunities for homeownership and will require more radical action on housing supply.”
The report also found that homeownership has fallen among 25-29 year-olds by more than half in the last 25 years - falling from 63% in 1990 to 31% recently.
The report's lead author, Dr Paul Sanderson, from Anglia Ruskin University said: "Going forward, the gap is likely to continue between those in the UK who can acquire that most significant of financial assets, the family home, and those who cannot.
"Only better-off young people and those who have parents who have already accumulated housing wealth are likely to be able to consider home ownership without radical changes to the housing market."
If you are looking for to buy your first house and are in need of a bargain, we recently reported on the cheapest house you can currently buy in Birmingham.
