Generation gap in FTB market perceptions
08/06/2015
A new study by high street bank Halifax has found that there are wide differences in perceptions of the first time buyer market between generations.
The study found that 12% of parents believe it is “virtually impossible for first-time buyers to obtain a mortgage”, yet this rises to 21%, or one in five for prospective first time buyers.
Halifax interviewed over 40,000 20 to 45 year olds collected over five years and 4,000 parents over the last four years. Soaring property prices and tougher mortgage assessments have lead to the low confidence levels, with only 43% of prospective buyers currently saving to buy a property, down 6%.
Although many people still believe they will not be able to get a mortgage, perceptions have improved over the last three years. Both groups were pessimistic about the first time buyer marker three years ago, with 21% of parents and 29% of prospective first-time buyers saying it was virtually impossible to get a mortgage.
The report also found that 57% of parents who own a property are contributing, or helping to contribute to a deposit for a house for their child. This compares with only 24% of parents who rent.
Craig McKinlay, Mortgage Director, Halifax, commented:
“The Generation Rent Report shows a clear divide between parents and their children as regards optimism over getting on the housing ladder. In reality there are more mortgages available which require a 5% deposit and first-time buyer numbers are increasing. But whether it is giving their children a cash lump sum or providing a roof over their heads while they save, it is clear the bank of mum and dad will have a role to play in helping their children get on the property ladder for the foreseeable future.”
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