Yorkshire renters count cost of no access to bank of mum and dad

For sale and to let boards on a street in York
For sale and to let boards on a street in York
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YORKSHIRE FAMILIES helped with a mortgage deposit so they can buy a home in their 20s end up almost half a million pounds better off than those stuck in rented accommodation, according to new research.

Housing charity Shelter found families given a helping hand also enjoy an £88,700 advantage over their lifetime compared to those that save for a deposit and eventually buy.

It said the figures underlined the impact of rising prices and housing shortages on those who cannot rely on their parents for financial help to buy their first home.

Shelter chief executive Campbell Robb said: “The housing shortage is changing the face of our nation, with dramatic consequences for an entire generation finding themselves priced out and losing out.

“The failure of successive governments to build the affordable homes we need means that, for the first time in over half a century, millions of young people today face worse prospects than their parents.

“Everyone should have the chance of a stable future where they can put down roots, but for many the reality is a lifetime of frustration that they can’t move on in life, coping with expensive and unstable private renting, and feeling alienated from their friends who can get help from the Bank of Mum and Dad.

“We need politicians to deliver a big and bold plan that will finally get to grips with our housing shortage, and put a stable future back within reach for both generation rent and generations to come.”

The Shelter research shows Yorkshire families who save for a deposit and buy enjoy a £351,300 lifetime advantage over those who stay in rented homes.

In better news, this region has one of the lowest average ages when families become mortgage free at 59, compared to 76 for London.

But Yorkshire homeowners see a return on their deposit 2.9times bigger than their initial outlay while their counterparts in the capital can expect it to grow 5.8 times.

Helping young people onto the housing ladder is expected to be a major issue in the General Election campaign.

The Yorkshire Post’s A Manifesto for Yorkshire has called for the next government to make building affordable homes a priority, particulary in rural areas.

In the Budget Chancellor George Osborne launched a new ISA which will see the Government contribute £50 for every £200 saved towards a deposit.

Labour has promised to help build 200,000 new homes a year by 2020 if it takes power after May 7.