by Housesimple on 17th May 2017
Rising house prices are great news for anyone looking to sell their home. However, they're also making it a little hard for first-time buyers to get on the property ladder. According to , the number of 25 to 34-year-olds still living with Mum and Dad has gone up by nearly 37% since 2007. With these figures in mind, we thought we'd take a look at what's behind these not-so-empty nests, and what sorts of schemes there are to help young buyers make their first property purchase.
It's not exactly rocket science: the rise in the number of adults living at home has happened around the same time as a 45% rise in the average price of a first-time property.
In 2006, first-time buyers were paying an average of £146,000. Last year, that figure reached £211,000. Two-thirds of those surveyed by Aviva stated that they still live at home to save up their cash.
However, many young people aren't worried at all about staying at home: actually, nearly half said they were perfectly happy with the situation. Around a quarter said they still live at home simply because they enjoy being looked after – it seems nothing beats Mum's cooking. A further 14% stick around to help look after elderly parents or other family members.
With property price tags getting that little bit bigger, more and more first-time buyers are turning to their families for a helping leg up onto the ladder. The Bank of Mum and Dad (and sometimes ) has become the UK's ninth biggest mortgage lender. They're expected to pass on £6.5 billion this year to help their kids get a foot on the ladder.
Thankfully, the government has put a few measures in place to help first-time buyers get a little more money together. The schemes include government-backed savings accounts, shared ownership programs, and a government loan to help first-timers purchase newly built properties.
The first rung may feel a little bit high for anyone approaching the property market for the first time, but there's help available for anyone needing a boost.
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