Research shows millennials need parents help to afford home

February 29, 2024 by Heidi

Surveys and Statistics

The latest research into the property market in the UK shows that one fifth of the generation known as ‘millennials’ are dependent on parental financial support to secure the deposit for a home.

In total this amounts to 20% of the millennial generation who are in that situation. By way of contrast, only 11% of those from the ‘baby boomer’ generation most likely to be the parents of millennials needed similar help to cover the costs of a deposit. Together carried out this study and it gives a clear indicator of the effect that ever-rising UK house prices are having on young people.

Another fact that was revealed by the study was that the same percentage of millennials – 20% – had been forced to move temporarily into the parental home again while they saved up deposit money. Again, when it comes to their parents’ generation, only 4% found it necessary to do that.

The average price of a home in the UK has gone up by a staggering 158% during the last half century. That figure is adjusted for inflation and shows the scale of the difficulties that younger generations face.

Customer sales director at Together, Alan Davison, told Mortgage Strategy that:

“Since 1974, when Together’s founder first lent on a property mortgage, the average house price has shot up from £8,915 to £284,950.”

Every mortgage advisor who has done the CeMAP course will know that lack of supply is the cause of this, but specialist loans are one potential solution.