Property News · May 3, 2017

The Guardian view on housing: don’t bank on Mum and Dad | Editorial


Parents are lending more than ever to help their children buy property – and entrenching inequality as they do so. More decent, affordable homes are neededOver recent years, a financial force has risen steadily through the ranks: it is now equivalent to the ninth-largest mortgage lender. But the bank of Mum and Dad’s ascent is not a story to be applauded: it testifies to the UK’s failures. Parents are expected to lend more than £6.5bn to help their children buy a first property this year, a 30% increase on 2016, according to new research.Such loans and gifts make a small dent in the striking generational inequality that exists in large part precisely because property prices have soared. In March, a report from the social mobility commission noted that home ownership among 25- to 29-year-olds had halved since 1990, to 31%. Over a third of first-time buyers in England rely on inherited wealth, it found; at some point in the 2020s, two in five are likely to do so. Continue reading…

Source : theguardian.com
Read more…The Guardian view on housing: don’t bank on Mum and Dad | Editorial

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