According to a survey conducted by the National Housing Federation, 34% of middle class parents with kids aged between 20 and 30 would like to see house prices stabilise, while 28% would rather see values fall in real terms, in order to help their offspring get on the housing ladder.
Only 33% want house prices to increase.
More than 60% think their children will find it impossible to buy their first home without financial help from them, and expect to have to raid their savings or dip into their retirement fund to the tune of at least £20,000 in order to assist their offspring into the housing market.
52% believe there is now a social expectation on parents to help their children buy their first home.
The research also revealed that 82% of middle class parents want more pressure on the banks to help first-time buyers, for example by increasing the availability of high loan-to-value mortgage loans.
Federation chief executive David Orr said: “The fact that 63% of middle-class first-time buyers will not be able to buy without recourse to the Bank of Mum and Dad is shocking.
“The findings of this research show that the growing housing crisis – with supply not meeting demand – is affecting people from all sections of society.
“Not only are millions of people now on waiting lists and living in overcrowded conditions, but the majority of middle-class first-time buyers cannot get a foot on the housing ladder without substantial help from their parents.”
He continued: “Over the years, we simply have not built enough homes for the demand that is out there. Last year, only 113,000 new homes were built across England, which is the lowest figure since 1923.
“The government needs to do more at this time of widespread cuts to protect the provision of housing.
“As the government considers cutting public spending, ministers should avoid drastic cuts to the housebuilding budget. Our research shows a cut of 40% to the budget would slash the number of planned new affordable homes for England by 230,000 up to 2020.”
