Parents could find themselves under increasing financial pressure to help their children onto the property ladder if new home are not built, Housing Minister Yvette Cooper warns today.
Fourteen thousand people a year are releasing equity from their homes to help them buy another property, often for their children. The average sum withdrawn is £74,000, Government figures show.
The figures also show the percentage of young people under 30 buying their own home with a mortgage has dropped. In 2001, 40 per cent of under-30 households were buying with a mortgage and 33 per cent were renting privately. By 2006, the situation had changed with 34 per cent buying and 41 per cent renting.
The Government says more new homes needed to be built to tackle long-term affordability problems.
Housing and Planning Minister Yvette Cooper said: “Many people are still opposing the increased housing we need so badly. Yet it won’t just be young people who lose out if we don’t build the new homes the next generation needs. These figures show their mums and dads will feel the heat too.
“It’s also unfair on people who can’t get family help to get them started. People’s chances of home ownership should not depend on whether or not their parents or grandparents were home owners before them.
“That’s why we need to support more homes, and more shared ownership schemes, to give people a first step on the ladder.”