Brits relying on mum and dad for deposit
The Index found that four out of five (81%) adults see saving for a deposit as the greatest barrier to home ownership.
With many having difficulties saving, 83% of 25 to 34-year-olds feel that aspiring homeowners need to borrow money from their parents.
Simon Crone, vice-president of mortgage insurance Europe at Genworth Financial, said: “Our Index reveals a growing expectation from both children and parents themselves that they will be required to help ‘fill the gap’ when it comes to their offspring’s savings and the level of deposit required.
“The Bank of Mum and Dad is now an institution which is increasingly called upon and has become a permanent fixture of the British housing market – but with many households financially vulnerable, not everyone has the luxury of this parental support.”
British households are anticipating rising house prices, with more than seven in 10 (72%) braced for further increases in the next two years, while in London the figure is as high as eight in 10 (80%).
Nearly seven in 10 (68%) in the capital feel that more homes need to be built compared to over half (52%) in the North.
Over half (51%) of UK households have experienced financial difficulties at least ‘sometimes’ in the past 12 months, with 63% of under-55s admiting they felt the pressure.
Crone added: “With the ongoing increase in house prices and incomes failing to keep pace, it is not surprising that the vast majority of British adults believe saving for a deposit remains the single biggest barrier to buying a property.
“Standard of living costs have also risen considerably in the past few years and saving continues to be difficult for many. With most British households anticipating that house prices are going to continue to rise while wage levels will not, the difficulties households face in saving for a deposit are not going to go away.”