Wealthy parents? Then you more likely to own your own home

Couple in first home

According to the recent statement by the Resolution Foundation, the best way for young people to own their own home is having property owned by parents.

Young people with parents which have property wealth are almost three times more likely to be home owners by 30.

The report established by Resolution Foundation underlined that parental wealth is almost as important as how much people earn when it comes to getting a home.

“Buying a home is almost impossible for many young people without access to the bank of mum and dad,” it stated.

The report merged together two sets of data to come up with its conclusions: the long time series of the British Household Panel Survey (BHPS) and its successor, Understanding Society (USoc).

The research also shows that in the mid-1990s and early 2000s, home ownership rates for 30-year-olds with parental property wealth were only twice that of young people whose parents did not own a home.

The gap has increased so that recent home ownership rates for 30-year-olds with parental property wealth are almost three times that of those without parental property wealth.

Young people with high levels of parental wealth benefit in other ways too – they are 74% more likely to have a degree than those without parental wealth, and typically earn at least £500 more per month.