Whether the pot is empty or just that global travel and fine dining are more attractive to parents, it seems that the ’bank of mum and dad’ is running dry, according to new research.
Home ownership remains the ultimate goal for ‘generation rent’, but aspirations to buy a home within the next five years have significantly dimmed compared to just a year ago as the ‘bank of mum and dad’ runs dry – according to the second annual Collyer Bristow Home Ownership Attitudes and Aspirations report for London and the South East.
- 52% of non-home owners surveyed hope to purchase a home in the next five years, compared to 62% in 2018.
- 40% do not believe home ownership is a realistic goal in the next five years, compared to 29% in 2018.
- The ‘bank of mum and dad’ helped 45% to buy a home, up from 32% in 2018, but only 25% of those expecting to buy in the next five years believe mum and dad will be able to help.
- Just 8% have no aspiration at all to own their own home.
- Price (77%) trumps location (59%) when choosing a home.
- Digital connectivity (28%) is seen as more important than environmental considerations (25%) and curb appeal (14%). However, digital connectivity is more important to men than women.
The annual report is based on the hopes and aspirations of a panel of 564 people aged 18 to 44, in London and the South East living in rented and owned accommodation.
The report finds that men are more confident (62%) that they will own their own home within the next five years than women (47%), and men are more likely (51%) to receive help from their parents than women (30%). Just 8% have no aspiration to own their own home at all.
Home ownership aspirations appear to fade as individuals get older, with 65% of 18-24 year olds believing they will own their own home within the next five years, falling to 55% amongst 25-34 year olds and 43% with 35-44 year olds.
Alex O’Connor, a Real Estate Partner at Collyer Bristow said: “The past 12 months have seen house prices slow or stall and rents increase, so it is no real surprise that our dream of home ownership remains undiminished. But the uncertainty in the market, no doubt caused by our protracted exit from Europe and the General Election, is being felt.
“There has been a marked fall in the number of people who believe they will own their own home within the next five years – confidence in the housing market has yet to return.”
Downloand a full copy of the Collyer Bristow Home Ownership Attitudes and Aspirations.