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A reminder that while the 'Bank of Mum & Dad' seems like benign help parents can give their children, its actually one of the key mechanisms (alongside under-taxed inheritance) that maintains inequality in the UK.

Now, over 50% of first time buyers rely on their parents to help them get on the wealth escalator that is the UK's dysfunctional housing market.

On an individual level parental help is clearly understandable, on a social level its actually a problem!

#housing #inequality

Chart: First time buyers in the UK increasingly rely on parental wealth. Share of first time buyers who received financial help from their parents by year of purchase & type pf help. Shows proportion rising from 20% in 1975 to over 50% in 2020. While paying for homes in its entirety remains a small proportion, & other financial help has grown slowly, the big leap has been in the proportion who received help with the deposit.
#housing #Inequality
in reply to Emeritus Prof Christopher May

Panicz Maciej Godek
Panicz Maciej Godek
• •
the alternative I see is that they don't take help from their parents, thus pumping up the pockets of landlords and bankers?
in reply to Panicz Maciej Godek

Emeritus Prof Christopher May
Emeritus Prof Christopher May
• •
No, you're right & that's why on the individual/family level is understandable behaviour - it points to a much larger problem in the UK housing market - the high prices (both of buying & renting) - there is not quick, easy solution, but we need to be working (as a society) to reduce the ration of house-prices to wages, or we are stuffed
in reply to Emeritus Prof Christopher May

Tim Ward ⭐🇪🇺🔶 #FBPE
Tim Ward ⭐🇪🇺🔶 #FBPE
• •

Once Upon A Time mortgages were regulated and limited to three times salary.

Guess what houses cost then? Yup, you've got it, three times salary.

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