Monday, 18 February 2019

More children need help to buy property

A NEW study has found more children are relying on their parents to help them get on the property ladder.

Research carried out by the think tank Resolution Foundation, has analysed the association between the property wealth held by people’s parents and their own.

Its report, entitled The House of the Rising Son (or Daughter) — The Impact of Parental Wealth on Their Children’s Homeownership, was published in December.

Authors, John Wood and Stephen Clarke found that at the age of 30, those without parental property wealth are approximately 60 per cent less likely to be homeowners than people whose parents are homeowners while those with wealthier parents are more likely to become homeowners.

They also found that the link between parental wealth and home ownership chances remains strong, even after adjusting for the greater home ownership prospects of those with higher earnings and qualifications, both of which are also related to parental wealth.

Mr Wood and Mr Clarke say that ownership rates have plummeted for today’s younger generation and that trend is likely to continue.

“Hypothetically, it would currently take a 27 to 30-year-old first time buyer around 18 years to save for a deposit if they relied solely on savings from their own disposable income (up from three years two decades ago),” they said.

“Rising unaffordability has led many first-time buyers to rely on family or friends to help with the deposit on their first home.”

The importance of parental property wealth has increased over time. In the Nineties and early 2000s, 30-year-olds with parental property wealth were approximately twice as likely to be homeowners as those without. This has risen to an estimated three times as likely from the mid-2000s onwards.

Meanwhile, the Office of National Statistics has created an interactive tool allowing people to see how environmentally friendly different cities are.

It is able to quantify the percentage of trees and hedges along roads using image data from Google Street View. For more information, visit www.ons.gov.uk

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