If you're in rented accommodation, how confident do you feel about owning your own home one day? According to research from Halifax, you could be feeling slightly more optimistic, with respondents believing that it's becoming easier to secure a mortgage.
It seems that improving economic conditions are filtering through into prospective buyers' confidence levels, with just 21% of renters aged 20-45 believing that it's 'virtually impossible for first-time buyers (FTBs) to secure a mortgage'. It may seem like a lot, but it's a noticeable drop from the 29% who said the same three years ago, showing just how much beliefs are changing.
Interestingly, parents of prospective buyers are even more confident, with just 12% thinking that it's impossible for first-timers to secure a mortgage, another welcome drop from the 21% who thought so in 2012. Parental contributions towards the costs of a mortgage have remained steady during that time, too – 26% contributed towards a deposit in 2012, a figure that's unchanged today – suggesting that the market is generally more amenable to FTBs.
It seems that renters are becoming increasingly willing to take drastic action to afford a mortgage, too, with 28% of parents reporting that children have moved back into their family home, up from 24% in 2012. Arguably, this is a sensible decision, as it'll make it easier for FTBs to save that all-important deposit.
"The Generation Rent Report shows a clear divide between parents and their children as regards optimism over getting on the housing ladder," said Craig McKinlay, mortgage director at Halifax.
"In reality, there are more mortgages available that require a 5% deposit and first-time buyer numbers are increasing. But 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."
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