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Lack of parental help is major problem for young property buyers

19-Mar-2010

The size of deposits being demanded by lenders is creating a "major problem" for young people trying to get on the property ladder, according to the Council for Mortgage Lenders (CML).

On average, first-time buyers are asked to stump up 25 per cent of a home's value as a deposit.

Bernard Clarke, communications manager for the CML, says that is a "very significant" amount for young people to find.

However, Mr Clarke identifies another problem that could be hampering the attempts of would-be first-time buyers even more - a lack of parental help.

In previous years, young buyers may have been helped out by family or friends with spare cash or finance raised on their own property.

However, "many of those relatives may [now] be much less confident and much less capable of doing that, given the decline they may have seen in their own property value", the expert states.

A recent survey by the National Housing Federation showed that 86 per cent of 18 to 30-year-olds could not currently afford to buy a home.

How to buy a house from finding your first property, first time buyer mortgages, mortgage advice, shared equity, shared ownership, joint ownership, part buy part rent and HomeBuy. All a first time buyer could need as well as first time buyer news at FirstRungNow.com.

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