One in six millennials are waiting for a relative to die as their main route to get on the property ladder, a rather depressing poll has found.
Research by comparison website Money.co.uk of 1,000 adults aged 18-34 found one in six are banking on the death of mum or dad to inherit a home.
The research doesn’t take into account the possibility that a home may need to be sold or used to fund care fees or inheritance tax, but it shows a lack of saving among young people and both a lack of awareness and willingness to use schemes that may help.
Asked what was stopping them buying, 53% said they can’t afford to save and 32% said they can’t afford the area they want to live in, while 19% are scared of such a big financial decision.
There is also fear among 12% of being rejected by a mortgage provider and the same amount don’t know how to start looking.
More than a third (38%) said they want to pay off existing debts first, while a fifth of the ‘romantics’ are waiting until they find love to split the financial burden.
Asked if they knew what their options were, 24% hadn’t heard of shared ownership and just 9% said they would use it.
More than half (57%) said they had heard of guarantor mortgages, and 65% were aware of gifting from parents, but just 6% and 11% respectively said they would use these routes.
There is also the option of the Government’s Help to Buy schemes, but while 84% were aware of the mortgage initiatives, only 34% planned to use it and only 38% said they would use the Help to Buy Isa.
Hannah Maundrell, editor in chief of money.co.uk, said: “Getting on the property ladder may not be the impossible dream many people think it is.
“There are a surprising number of schemes that can help those who can’t afford to get a big deposit together, many of which they probably don’t even know about.
“If parents can afford it, ‘gifting’ money to children or grandchildren can often be a good way to give kids a tax-free early inheritance to help with the deposit.
“Alternatively, parents that are confident in their kids’ financial capability can be a ‘guarantor’ for their mortgage – this might help them get the deal they need.”
I think they are still avoiding actually helping First time buyers, now there are just passing the burden onto mum/dad/grandparents. What if they can’t afford it and we still have a large population of generation rent who are going to be payinf out more than they bring in creating more debt in society. Not to bash Homewise again but do over 60’s really need 3,4,5 bedroom homes? Government needs to pay more attention to what is to offer first time buyers on shared ownership, as a family with three small dogs, we want a house and all we can afford is a two bedroom small apartment in our area (There are lots of houses availble though with homewise in our budget for shared). If I move area I won’t qualify for until I’ve lived somewhere for three years, investing more money in rent.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Well said female agent88. Out of all the groups that were hit the hardest after the banking crisis first time buyers, to my mind, were affected the worst……and they were by far the least to blame. I have to say I feel really sorry for your situation. It’s a ridiculous situation that renting somewhere would probably cost you far more than bipuying somewhere with a cheap mortgage…….but of course the affordability rules say you can’t borrow enough to do that.
I have lots of ideas that would help, but as just a lowly agent, not yet a so-called ‘industry expert’ no-one will listen to me. My ideas also involve thinking outside the box, more flexibility in rules and regulations and a far sighted viewpoint……..all things our politicians seem incapable of doing.
You need to start a pressure think-tank group ‘let us buy, don’t force us to rent’. I’m too long in tooth to be totally relevant in your cause….but I would help you all I can….especially with the ideas.
I have two teenage daughters……and I desperately want them in the future to have the same opportunity to buy their own home as I had in my late twenties.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
buying…not bipuying
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I to be honest am not sure what the answer is, no one wants to loose out on their most valuable assest and sell cheaply just to help first time buyers and I understand why there is no more 100% mortgage to a degree, but in truth if you have to save a % and rent or buy now and fully invest, your financial vunrability is the same and government gets to keep its stamp duty, seeing as that the thing everyone is eyeing up to be cut to help the market. Plus the easier it is to buy the more people will more and the more stamp duty will be paid, which can be used to help boost the economy further with what looks like an uncertain road at present. My parents assests are worth in excess of £1 million but if I can’t even get on the property ladder I would rather their equity stay there for when they eventually/potentially need it. To be fair if I had known it would have been this tough I would have started saving at 16 with my first job even £100 a month I have £13,000 in savings at this point as a bare minimum and I wouldn’t feel so hateful towards current circumstances, equally I think young people living it at home now should be told the harsh realities of cost of moving out e.g if you rent is £700 C/T £100 Utilities £100, that £900 so just start saving £900 a month (as an example). Instead it’s on the never never and before you know it your grown up and should be moving out of home so you jump into rented.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
What a sad situation, that young hope for the death of a relative just so they can afford to buy …. once they have bought and settled they cannot then buy back the relative that they will then need!
There is a strong need for more help not just for first time buyers but also divorcing parents who then cannot afford to buy again or only have a small deposit but unfortunately are too old to now get a mortgage!
Back to the same problem, investors see property as their pension because of poor interest rates with savings and banks, the more investors means the prices rise out of reach of people that want to buy a home to live in – the government needs to step in to stop investors buying into property just for greed and freeing up housing for those that need it.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Bank of death just simply doesn’t have the right ring to it!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register