Research from the Building Societies Association (BSA), found that more than half of those surveyed, 53 per cent, believe older family members should offer financial help to younger loved ones to help them buy a home if they can. This compared to just 28 per cent who don’t think they should.
Just under half, 49 per cent, of parents said they expected to leave a bequest to younger family when they passed away.
While many parents anticipate helping their children get onto the ladder, the children themselves are not expecting to receive that help. Less than a third, 29 per cent, of would-be first-time buyers said they expected financial help from a parent in purchasing a home.
The study also revealed a generational divide, as parents under the age of 60 were less inclined to provide financial support to their younger loved ones than parents aged over 60. The BSA suggested this was likely down to the higher value of assets held by older generations.
The BSA research found that almost half of those surveyed, 45 per cent, expect house prices to continue to rise next year, with just 13 per cent expecting a fall, making putting together a deposit an even bigger challenge for potential homebuyers.
It also revealed a real drop in confidence in the housing market, with just 21 per cent saying now is a good time to buy property, down from 26 per cent three months a go. Almost one in three think that now is not a good time to purchase property.
Paul Broadhead (pictured), head of mortgage housing policy at the BSA, said that with house prices rising faster than both inflation and wage growth, it was no surprise that building a deposit remained the most testing aspect of getting onto the property ladder.
He continued: “But it’s clear that many families are more willing to share their wealth and give financial help than the younger generation appreciate.
“Perhaps families should use the festive period to talk candidly to each other about their future plans and aspirations and how best to use their inter-generational wealth. It could be the best present under the tree for all.”
