04 May 2016
Older Britons ‘helping young to buy homes’
Many Britons are being helped to climb onto the property ladder by their generous parents, new research shows.
Credit checking firm Experian questioned over 1,800 people aged 55 and above.
Among them, over a quarter (27%) say they have given their children or someone else financial help to enable them to purchase a home. Of them, 15% say they have helped out despite seeing themselves as not being at all financially comfortable.
The survey also illustrates the increase in property prices seen over the last few decades. Nearly two thirds (60%) of those surveyed say their first home cost them £20,000 or less compared to today's average price of over £200,000.
Nearly half say they bought their first home when they were under 25, with around 10% doing so without a deposit.
According to the Council of Mortgage Lenders, today's average first-time buyer is aged around 30.
Experian's managing director, Clive Lawson, says the study suggests some older people may be "over-stretching" themselves in order to help their children or others get a mortgage.
Those wanting to help, he adds, should make sure they understand the implications and ensure it does not put their own finances at risk.