Bank of granny and granddad

Friday, 27 January 2012

Struggling young people are being forced to ask their grandparents for help with house deposits - as their parents cannot spare any cash, a report says.

The Taylor Wimpey study, based on interviews with 1,000 young people, found one in ten has turned to their grandparents for help to buy a home.

It also showed that the majority of grown-up children forced to live at home to save funds for their first property had fallen out with their parents.

Some young people feared they would be living at home well into their late 40s or even early 50s in order to accrue enough cash to move out.

Paul Smee, of the Council of Mortgage Lenders, said home ownership was an "unrealistic assumption" for many young adults.

A report published by HSBC also warned that Britain is facing a "housing stagnation" this year - with a large number of young adults unable to buy property.

It showed the under-34s felt they could not get onto the property ladder because of a lack of potential for savings, getting a mortgage or worries about their job security.

In 2005, 69 per cent of first-time buyers  bought their home without any financial help, compared with 35 per cent today.