It’s probably a no-brainer – do you spend 18 years patiently saving for the deposit to buy your first home or do you tap into the Bank of Mum and Dad?
In an age where someone in their 20s would need to save up for an average of 18 years or so to scrape together the deposit for a first home, an increasing number are instead turning to the Bank of Mum and Dad says a new study.
The report by the Resolution Foundation on the 4th of December 2018 says that that very bank has become the ninth most valuable lender to those struggling to save for their first deposit on a home. This is the second year that the Bank of Mum and Dad has been mentioned as a major lender in the media.
The difficulty of going it alone
The Resolution Foundation’s report shows just how difficult it has become for youngsters to go it alone and try to find the deposit to buy a home under their own steam.
As recently as the mid-1990s, for example, it might have taken someone in their late 20s just three years to save for that deposit – in 2018, it has risen to an average of 18 years.
Whether you can tap into the Bank of Mum and Dad of course depends on the wealth of said parents. The Resolution Foundation discovered that owning your own home is likely to be determined whether or not your parents do too.
Only 11% of youngsters of parents who are not property owners go on to own their own home, whereas more than 33% of the children of property-owning parents themselves go on to own their own home.