A quarter of first-time buyers in the UK are relying on inheritance money from their parents to get them onto the property ladder, according to new research.
Data published by Halifax indicated that 25 per cent of 18 to 34-year-olds think they will never own their own home and the same proportion believe they will have to rely on inheritance money from family members to take the first step onto the property ladder.
Almost half of the 1,500 people surveyed said they think it is currently harder than ever to buy their first home, with 18 per cent considering leaving the UK to try and purchase their first property.
Help is out there
While many first-time buyers may feel they are facing a real struggle there are a range of incentives developed by the government to encourage younger people to buy a new home, rather than continuing to rent.
Help to Buy has been successful since its launch and has helped thousands of first-time buyers access the funds required to purchase their first property. The government is also set to launch a new Lifetime ISA scheme on 6 April 2017.
The product will see the government add a 25 per cent bonus on top of what first-time buyers can save, meaning those looking to get onto the property ladder can access up to £32,000 of free cash.
Rob Slocombe, group production director at Avant Homes, said: “Many young people have aspirations of owning their own home, and for many an inheritance will help them achieve these aims, allow them to supplement a deposit and make their first move onto the property ladder.
"However, it is important to remember there are other initiatives and schemes designed to help young people buy their first home.
“We are very proud to offer the government Help to Buy scheme and over 20 per cent of buyers of an Avant home in 2016 used the initiative, so we have seen first-hand how successful the scheme has been in helping them realising their ambitions.
“The launch of Lifetime ISAs next month will provide a new avenue for young people who are continuing to strive to own a property and we look forward to the initiative’s success.”
Lifetime ISAs and what you need to know
First-time buyers using the new initiative can save up to £4,000 a year, either as a lump sum or by putting in cash throughout the year. This will then be supplemented with a 25 per cent bonus from the government, so those able to save the full allowance will end up with £5,000 before interest and growth is applied.
Other important factors to consider are:
- You need to have a Lifetime ISA for 12 months or more to be able to use it for a home
- The funds will be paid directly to the conveyancer or solicitor
- You need to be buying a property with a mortgage