Turning to the parents for a bit of financial assistance as always been done – turning to the grandparents, however, is becoming more and more popular these days. Research from the housebuilder Taylor Wimpey shows that, out of the 1000 young people interviewed, 10% were turning to their grandparents for help in buying a home.
This information seems to indicate that, not only are young people having a difficult time affording their first home, but that mom and dad aren’t able to help them out.
Staying at Home Longer
The research also showed that more grown-up children are resorting to remaining in their parents’ homes, creating tension in their family relationships. Paul Smee, from the Council of Mortgage Lenders, has said that owning a home is simply an “unrealistic assumption” for many and that many people will have to continue renting far longer than they assumed that they would.
Housing Stagnation
Another report that was just published by HSBC shows that England is having a “housing stagnation” issue since so many people can’t afford to buy. Bank of England reports that many property sales have been falling through lately, as one of the parties gets cold feet.
According to the Council of Mortgage Lenders, 69% of first-time buyers bought their homes on their own in 2005 – today that number is only at 35%.