More first-time buyers 'to turn to parental help'

16-Jul-2008

More first-time buyers will be forced to turn to their parents for help with purchasing a property in the coming months, it has been predicted.

According to Child trust fund specialist The Children's Mutual, an absence of 100 per cent mortgages means by the end of 2008 around 214,800 first-time buyers will need to have found an average of £19,780 for a homebuy.

"Even allowing for recent reductions in house values, historic house price inflation - combined with lenders' current abandonment of 100 per cent plus mortgages - means that it is all but impossible for first-time buyers to get a foot on the property ladder without a substantial deposit," said the organisation's chief executive, David White.

"Parents of younger children might look to the lessons of the present when preparing for the future and should consider saving for their children now," he added.

Mr White went on to note that prior to the credit crunch, almost half of all parents questioned already expected to help their children purchase their first home.

Further research from The Children's Mutual found 40 per cent of teenagers today believe buying a home in the future will be impossible without parental help with deposits and other fees.

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