Daily Mail

Bank of Mum and Dad is key to own­ing your first home

- Daily Mail Re­porter United Kingdom

Youngsters whose par­ents have wealth tied up in prop­erty are al­most three times as likely to own a home by the age of 30, a study re­veals.

the ‘ Bank of Mum and Dad’ is also in­creas­ingly a key fac­tor in get­ting on the hous­ing lad­der, a re­port by the res­o­lu­tion Foun­da­tion think-tank sug­gests.

ris­ing prop­erty prices and slug­gish wages have seen the prospects of youngsters own­ing a home by 30 fall­ing more quickly if their par­ents are not home­own­ers, the re­port found.

Be­tween 2004 and 2017, one in four 30year-olds with parental prop­erty wealth were home-own­ers, com­pared with less than one in ten of those with­out.

Be­tween 1991 and 2003, two in five 30year-olds with parental prop­erty wealth owned homes, com­pared with around one in five of those whose par­ents did not have prop­erty wealth.

the re­port also said higher lev­els of parental wealth can boost their chil­dren’s chances of go­ing to univer­sity and get­ting a higher-paid job – both fac­tors which can in­crease the chances of home-own­er­ship.

stephen Clarke, of the res­o­lu­tion Foun­da­tion, said: ‘these find­ings re­in­force the need to think more broadly about what the bar­ri­ers to so­cial mo­bil­ity are in 21st cen­tury Bri­tain. We’ve al­ways known that who your par­ents are af­fects what ed­u­ca­tion you get and job you do.

‘But in­creas­ingly the ef­fect is con­tin­u­ing later into life by de­ter­min­ing whether you are able to own a home of your own.’

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