More than half of Britain’s youth fear being stuck at home as house prices soar above what they can afford, research from YouGov for Shareamortgage.com reveals.
The survey of more than 2,500 Britons found 51% of 18-34 year olds worry that not being able to afford to buy a property means they may have to live with their parents or guardians for longer than they want to. Some 49% of this demographic are concerned they will not feel independent if they are unable to get on the housing ladder.
With 4m under 34-year-olds still living at home, parents are looking for ways to help their children avoid becoming trapped in ‘generation rent’. A survey by Santander shows one in two first time buyers receive financial help from the bank of mum and dad. In most cases this help is gifted, however 29 per cent give the money as an interest-free loan and three per cent as an investment. And according to research by Santander insurance, 39% of joint property transactions in the next couple of years will be between friends, family members, and unmarried couples.
In a bid to support parents who want to help their children find a property of their own, Shareamortgage.com has launched the ‘Help your Child to Buy’ scheme to offer legal backing for parents to help their children get on the ladder.
Andrew Boast, co-founder of Shareamortgage.com, says, “The UK housing market is a minefield. Property prices have increased by 6.7% this year, whereas wages are rising by a mere 1.5%, leaving first time buyers struggling to make the leap into home ownership without financial assistance. It’s therefore reassuring to hear that so many parents are supporting their offspring and I am proud to say that Shareamortgage.com is launching a platform to ease this process.”
“Children can buy with their parents or with other people and there are various different ways in which parents and relatives can gift, loan or guarantee funds. Our platform provides a safe and secure place for this to occur.
“We also offer our Shared Ownership protection, which is a legally-binding agreement between all parties involved in buying a house. It sets down entirely the parameters of the project, how the matter is intended to progress and what happens if either the children or the parents or relatives wish to change or leave the arrangement in the future.
“We believe it offers the best protection on the market for those intending to share a mortgage.”