Confidence in the first-time buyer market has grown over the past 3 years, a report by Halifax has suggested.
The 2015 Generation Rent Report shows that 21% of prospective first-time buyers think it is ‘virtually impossible’ to obtain a mortgage, while just 12% of parents believe the same.
The research shows that confidence in the mortgage market is growing among both generations. A similar Halifax survey in 2012 found that 29% of prospective first-time buyers and 21% of parents saw the first-time buyer market as ‘virtually impossible’ to get onto.
The report also highlights a divide between parents who own property and those that continue to rent. Of the property owners, 57% say they have contributed, or planned to, their children’s deposit. This compared to 24% of renting parents.
The findings are based on interviews with 40,000 20-45 year-olds in the past 5 years, and more than 4,000 parents of 20-45 year-olds over the past 4 years.
Craig McKinlay, mortgage director at Halifax, said:
“The Generation Rent Report shows a clear divide between parents and their children as regards optimism over getting on the housing ladder. In reality there are more mortgages available which require a 5% deposit and first-time buyer numbers are increasing.
“Whether it is giving their children a cash lump sum or providing a roof over their heads while they save, it is clear the bank of mum and dad will have a role to play in helping their children get on the property ladder for the foreseeable future.”