Nearly a quarter of Brits need parents’ help to fund house deposit

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28th August 2019 17:43 - Financial Services

Nearly a quarter of Brits need parents’ help to fund house deposit: A survey has found that almost a quarter of Brits (23.5%) have to enlist their parents’ help (or other family members) when it comes to getting a deposit together to buy their first home. 

The survey by KIS Finance shows that 28% of 18-24 year olds will rely on help from their parents, as will 34% of 25-34 year olds and 36% of 35-44 year-olds. 

The research also found that while the average age given by the ONS for being able to purchase a first property is 34, the KIS Finance research suggests the age is even higher.  Indeed, 44.2% of people aged 35-44 years who want to get on the property ladder have not been able to, with 17% having to ask for support from their parents. 

Brits in their 40s and 50s (between 45-54 years) have also been unable to buy their first home, according to the poll, with 28.3% still not in a position to do so. Of these, 7.6% will have to rely on parents or family members to save the amount needed for a deposit and moving costs. 

The research says that the cost of a home in England is now 7.8 times the national average income - with costs rocketing to 44.5 times the average for a property in the exclusive Royal London borough of Kensington and Chelsea.

A person’s location in the UK can also be a factor on how easy it is for them to buy their first home. According to the data, the average house price in the north west of England would require an average deposit of £32,378 - which would take an 18-24 year old saving 20% of their salary, 9 years and 5 months to save for. Or if they could only put 10% of their salary aside, it would be more like 18 years and 7 months. In this region, 19.2% of people will rely on their family to help fund a deposit on their first home.

In London, the figures are even more eye-watering. It would take an 18-24 year old who was saving 20% of their salary, 27 years and one month to save for the average house deposit of £94,300. Or, if they were saving 10% of their salary, more than half a century (54 years and two months) to be in a position to buy. Indeed, in the capital, 30.7% of people who buy a home are reliant on the bank of mum and dad to get a foot on the property ladder. 

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