First-time buyers “forced” to live with parents
There has been a rise in the number of potential first-time buyers who are moving in with their parents to save for a deposit, reveal new figures.
According to research from Which? Mortgage Advisers, around 250,000 people purchased their first property last year, but 22 per cent had to live with family in order to do so.
In addition, many worked overtime to save more money for a deposit, with 37 per cent putting in extra hours at work to add to their savings pot.
Some wannabe property owners also sold their personal belongings to help afford their first property.
The average property price in the UK now stands at £234,794, which often requires a deposit of around ten per cent or more, as well as the other costs needed to purchase a home.
“For many, the prospect of saving a deposit for a first home can be daunting, unrealistic and even downright depressing,” said David Blake, principal mortgage adviser at Which? Mortgage Advisers.
“However, there are various options out there for first-time buyers, from Help to Buy ISAs to equity loans, and even shared ownership. Consider speaking to an independent expert who can offer advice tailored specifically for you,” he added.
Data from the Institute for Fiscal Studies shows over the last two decades there has been a sharp fall in homeownership among young people in the UK.