Half of all homeowners had help getting onto the property ladder, with one in 10 (11%) having received financial support from the Bank of Mum and Dad.
Research carried out by The Mortgage Lender found that 50% of current homeowners had help buying their first home. Common forms of support other than parental help included using a Help to Buy individual savings account (ISA) or Lifetime ISA, or buying via the Shared Ownership or Rent to Buy schemes.
More than four in 10 (42%) of those questioned said that they didn’t feel the government has done enough historically to help first time buyers get onto the property ladder.
Chris Kirby, head of key accounts and specialist distribution at The Mortgage Lender, said: “Affordability has proven to be one of the most pressing issues regarding the property market, and our latest research demonstrates the impact of that on the journey to homeownership.
“With rents continuing to rise in most areas of the U.K, many prospective buyers will likely feel trapped between spending more renting and high buying costs, which can lead to significant delays in being able to purchase a property, and/or having to make compromises on what or where they buy.”
According to latest data from the Office for National Statistics, private rental prices paid by tenants in the UK rose by 5.3% in the 12 months to July 2023, up from 5.2% in the 12 months to June 2023 and their highest level since records began in 2016.
If you’re trying to get onto the property ladder, it’s worth getting professional advice so that you can work out exactly how much you can afford to spend, and which deals you might be eligible for.
Mr Kirby said: “Those looking to get onto the housing ladder should take time to research what options are available to them, whilst also seeking the advice and guidance of a mortgage broker, who will be able to help clarify what support there may be, but also how best to achieve the level of borrowing they're looking for sooner rather than later depending on their situation.”
Half of homeowners had help buying their first home