Coulter, R. (2016) Family trajectories and young adults’ homeownership transitions: Briefing Paper 3 [ONS LS]
Other information: Abstract:
Financial constraints mean that many young people are turning to their parents for support to enter homeownership. Parents with greater access to resources are often better placed to provide both financial and non-monetary assistance to their children, and research shows that young people are more likely to become homeowners when their parents own their dwelling or are more advantaged in the labour force. However, the importance of parental socio-economic status may vary across housing markets. Having advantaged parents is likely to be particularly crucial for young adults’ homeownership in places where high house prices stretch the affordability of mortgages and force prospective buyers to muster larger deposits. By contrast, parental socio-economic status and parental assistance may be less important if house prices are lower and prospective buyers therefore have lower financial barriers to surmount. The geography of house prices could thus shape the intergenerational transmission of wealth and (dis)advantage through the housing system.