A new study shows increasing numbers of parents are worried about the impact of rising rent levels and house prices on their children's ability to find their first home.
The figures from the National Housing Federation shows that just over half of parents in London believe their children will be 'locked out' of the capital, followed by four of ten mums and dads in the South East and West Midlands. Around a quarter of parents are similarly worried in the Yorkshire & Humber region, and one in five in the North East.
Overall, more than two thirds of parents believe that their children will be unable to afford a home in the future without their financial support.
"Are we really ok with the idea of some of our towns and cities being priced beyond the pay packets of young people?" said Daniel Klemm, external affairs manager for Yorkshire and the Humber at the National Housing Federation. "How will our communities survive if young people can’t afford to live there? This is the situation we’re facing if we don’t tackle the housing crisis."
Borrowers with dependents and low incomes have also been hit hardest by the new rules introduced as part of the Mortgage Market Review, says the Intermediary Mortgage Lenders Association.
Its research shows that lenders and brokers picked out low income borrowers, borrowers with dependents, and self-employed borrowers as the three types of borrowers who have felt the biggest impact in terms of what they can borrow under MMR.
A separate report from the NHF estimates that first-time buyers now have to pay, in real terms adjusted for inflation, ten times the deposit needed in the early 1980s.
"With the high salary, and huge deposit younger generations now need to buy even a modest home, home ownership is quickly becoming an exclusive members club," said David Orr, Chief Executive of the National Housing Federation. "Sadly, it will depend on the wealth of the family you were born into as much as your own hard work.
"We’ve found that eight out of 10 people don’t believe any of the main political parties will effectively deal with housing, but they still have the chance to put that right. With a bold long term government plan for house building our housing crisis is solvable. We desperately need politicians from all sides to commit to ending the housing crisis within a generation."
According to the RICS, new buyer enquiries fell for the second consecutive month in August, while the number of agreed house sales also driooed for the first time since September 2012.Reuse content