Alliance & Leicester has revealed that nearly a quarter of parents in the UK cannot afford to buy their own property, and rely on renting or living with their children’s grandparents.
Out of these parents, only 3% are currently seeking their own home, while over half are not even attempting to look for property thanks to spiralling costs for first-time buyers.
A&L also commissioned further investigation by the Centre For Future Studies to emphasise the problems faced by parents in the UK. With divorce rates set to double by 2021, the increased single-parent families will find it even harder to afford their own property on a single income; by 2014 the CFS predicts 62% of all parents in the UK will not be able to get onto the property ladder.
Stephen Leonard, director of mortgages at A&L, says: “We are currently seeing a shift in our society which will affect the housing market over the next twenty years or so. The decrease in the number of nuclear families as a result of divorce could mean an increase in the number of rented households with children as our research indicates.
“Although parental renters might be put off looking into buying a home because of the expense they shouldn’t think that it is always out of their reach. More and more lenders are using affordability based lending based on their personal financial circumstances, which is a more realistic and accurate way to calculate what they can borrow.”