The report, which surveyed 18-40 year olds, found that 66% of would-be UK homeowners who expected financial assistance feel bad about taking the cash. Despite the guilt, however, getting a helping hand from the ‘Bank of Mom and Dad’ is quickly becoming the norm. The results revealed that 59% of respondents expected to receive familial assistance for their first property – double the number of first-time buyers (26%) who received support with their deposits in 2016.
With an average price tag of £198,325 for a first house in England, a 10% deposit entails an almost £20,000 upfront cost. The survey found 80% of respondents expect the total value of familial support to be less than this amount, but 14% of respondents aged 25-40 expected the value of financial support to be above £40,000, compared with 5% of those aged 18-24 who expected such a large contribution.
Part of the reason these borrowers feel guilty is driven by concerns over impacts on their family. The survey found that 59% of those expecting financial support worried about harming their parents’ future financial prospects by asking for help.
However, guilt and gloom is not all that would-be buyers are feeling: 65% of those surveyed was optimistic, believing that it was likely or very likely that they’d become homeowners at some point. While 56% said that owning a home is a major marker of life success (compared to 63% in 2016), and 56% said they’re currently saving for their first house.
David Robinson, the national intermediary sales manager at Accord Mortgages, also emphasised the report can help mortgage advisers keep up to date with their clients: “Many first-time buyers turn to a broker for advice, so our survey results may help to remind them of the financial and moral dilemmas first-time buyers face when they help a client take their first steps on the property ladder.”