Many first-time buyers are being held back from getting onto the property ladder because of the cost-of-living crisis and inflation, finds a new report.
Findings from the Aviva survey revealed that the cost of a mortgage is being substantially underestimated, with the potential to dissuade more people from buying their own home for the first time.
The report shows that the role of intergenerational giving remains as important as ever for helping first-time buyers.
Twelve per cent of respondents said they were expecting a gift or loan from parents to help meet their costs, and four per cent said they expect the same from grandparents.
Interestingly, individual contributions are more generous from grandparents – typically they contribute a gift of £18,850, and £16,990 as a loan, compared with £17,730 and £14,130 respectively from parents.
Matt McGill, MD Aviva Equity Release, commented, “The cost-of-living crisis, and other factors resulting in higher inflation and interest rates, have put pressure on people juggling competing financial demands. Events of the past few months have created uncertainty; nobody can predict the outlook for the coming months with any confidence.