‘FTBs need help from bank of mum and dad’

The survey of more than 8000 people carried out by YouGov showed that 53 per cent of those hoping to buy will still need the ‘bank of mum and dad’ to build a deposit, but 29 per cent do not expect that help to materialise.

It revealed that 51 per cent of 18 to 24 year olds said this family help was crucial. The findings also showed that 48 per cent of the youngsters who expected to receive assistance believed they were more likely to buy as a result.

Bob Pannell, chief economist for the CML, said the absence of family help could “cast a particularly strong negative effect” on the hopes of first-time buyers.

However, he added that there were limits to how much parental help can mitigate the huge deposits now required.

Writing in the CML’s fortnightly newsletter, he said: “The fact that an increased reliance on the bank of mum and dad in recent years has, until recently, gone hand in hand with sharply reduced numbers, illustrates that there are material limits to how much parental help can deliver, both in terms of how many parents are in a position to offer help and the depth of their pockets.”

He concluded that the government’s Help to Buy scheme could enable more young people to get on the housing ladder of their own accord and ease the pressure on families.

Adviser view

Colin Parkin, director of Lincolnshire-based Ample Financial Services, said: “Should a first-time buyer be asking their parents for help? Some parents would be able to provide that help but others don’t so it’s not a level playing field.

“Help to Buy has the potential to help but whether it will work or not remains to seen. More and more hurdles are being put in the way so if you haven’t got a 25 per cent deposit, do you have any realistic hope of buying?”