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