Young people who have parents with their own house are three times as likely to be homeowners by the age of 30, compared to those who have no property wealth, according to a new report by the Resolution Foundation.
The ‘Bank of Mum and Dad’ is now a key part in young people becoming first-time buyers.
At the age of 30, people without parental property wealth are approximately 60 per cent less likely to be homeowners than people whose parents do own property.
Between 2004 and 2017, one in four 30-year-olds with parental property wealth were home-owners, compared with less than one in ten of those without.
The report also found that having parents with property wealth also boosted young people’s chance of having a degree and getting a higher-paid job.
Both these factors increase the chance of the young people becoming homeowners.
The report suggests building more houses would help more young people but that they also need more “radical” policy as “declines in interest rates” drive up house prices.
Stephen Clarke, Senior Economic Analyst at the Resolution Foundation described it as "almost impossible" for young people to buy a house without the "Bank of Mum and Dad".
He said: “High house prices and sluggish wage growth have meant that being able to buy a home of their own is almost impossible for many young people without access to the Bank of Mum and Dad.
“In fact, our housing crisis is so big that what your parents own is becoming as important as how much you earn when it comes to owning your own home. This is particularly worrying for the one in two millennials who aren’t homeowners, and whose parents also aren’t either.
“These findings reinforce the need to think more broadly about what the barriers to social mobility are in 21st century Britain. We’ve always known that who your parents are affects what education you get and job you do. But increasingly the effect is continuing later into life by determining whether you are able to own a home of your own.”