Hundreds of thousands of homeowners are stuck in their first homes because their parents are hogging up the housing market, according to a report by HSBC.
Findings by the banking giant show that as many as 360,000 buyers who bought their starter homes in 2007 are trapped in them and unable to move up the property ladder.
The research revealed that properties from four years ago have not appreciated in value and some are even worth less than what they were paid for. As a result, the generation gap is having serious implications on when families have children and how many children they have.
The study found that the average first-time buyer property in 2007 cost £160,000 and needed a 10% deposit but since then the property prices have dropped by on average £11,000. And according to the Council of Mortgage Lenders the average age of a first-time buyer is now 31 but only if they have financial help from parents- if not, the age rises to 37.
One mother told The Mail Online: “It seems cruel, doesn’t it, that a financial crisis and a property slump could determine the size of your family?”
Many first-time buyers who are trying to buy a home have to fork out a massive 30% deposit nowadays, leaving many Brits unable to borrow or save their way through the dilemma.
Now David Cameron has vowed to improve the housing market and ‘get Britain building’. The Prime Minister has said that buyers of new homes will be able to borrow up to 95% of the value in a bid to help Brits get onto the property ladder.
Let’s hope the government plans come into fruition and more people can afford to buy their starter home, hire Robinsons international removals and begin an exciting new life together!
Image Courtesy of Images_of_Money’s and reused under the terms of the Creative Commons Licence.
Hundreds of thousands of homeowners are stuck in their first homes because their parents are hogging up the housing market, according to a report by HSBC.
Findings by the banking giant show that as many as 360,000 buyers who bought their starter homes in 2007 are trapped in them and unable to move up the property ladder.
The research revealed that properties from four years ago have not appreciated in value and some are even worth less than what they were paid for. As a result, the generation gap is having serious implications on when families have children and how many children they have.
The study found that the average first-time buyer property in 2007 cost £160,000 and needed a 10% deposit but since then the property prices have dropped by on average £11,000. And according to the Council of Mortgage Lenders the average age of a first-time buyer is now 31 but only if they have financial help from parents- if not, the age rises to 37.
One mother told The Mail Online: “It seems cruel, doesn’t it, that a financial crisis and a property slump could determine the size of your family?”
Many first-time buyers who are trying to buy a home have to fork out a massive 30% deposit nowadays, leaving many Brits unable to borrow or save their way through the dilemma.
Now David Cameron has vowed to improve the housing market and ‘get Britain building’. The Prime Minister has said that buyers of new homes will be able to borrow up to 95% of the value in a bid to help Brits get onto the property ladder.
Let’s hope the government plans come into fruition and more people can afford to buy their starter home, hire Robinsons international removals and begin an exciting new life together!
Image Courtesy of Images_of_Money’s and reused under the terms of the Creative Commons Licence.
