Parents could find themselves under increasing financial pressure to help their children on to the property ladder if opposition to new house building continues, warns Housing Minister Yvette Cooper in a report from the Department of Communities & Local Government.
Fourteen thousand people a year are releasing equity from their homes to help them buy another property, either for themselves or for family members, reveal new Government figures just released. The average sum withdrawn is £74,000.
The figures also show the percentage of young people under the age of 30 buying their own home with a mortgage has dropped. In 2001, 40% of under 30 households were buying with a mortgage and 33% were renting privately. By 2006, the situation had changed with 34% buying and 41% renting.
The Government said more new homes needed to be built to tackle long-term affordability problems. Levels of house building have increased to more than 165,000 from 130,000 in 2001, but the Government has made clear this needs to reach 200,000 a year to respond to rising demand and affordability pressures.
New planning guidance will be published shortly which will support house building and encourage councils to build the new homes their communities need in the long term.
Housing and Planning Minister Yvette Cooper said: "Many people are still opposing the increased housing we need so badly. Yet it won't just be young people who lose out if we don't build the new homes the next generation needs. These figures show their mums and dads will feel the heat too. It's also unfair on people who can't get family help to get them started. People's chances of home ownership should not depend on whether or not their parents or grandparents were home owners before them. That's why we need to support more homes, and more shared ownership schemes, to give people a first step on the ladder."
