A survey outlines that 62% of home owners aged over 55 would accept either no growth or a decrease in house prices if it resulted in the younger generation being able to purchase a home.
The poll which was conducted by the National Housing Federation highlights 62% of home owners who are aged 55 or over be happy to accept either no growth or at least a 10% decrease in house prices over the period of two years as long as it helped younger people, aged under 35, to buy a house.
This was the opposite of the other 48% of older home owners who would be happy to accept no growth in house prices and 32% who would accept the 10% price drop to help younger buyers.
“Contrary to political opinion, the British public are no longer obsessed with perpetual house price growth. In fact, the overwhelming majority would now accept a less buoyant market if it made life easier for the next generation,” said NHF chief executive David Orr.
“That so many who stand to benefit would today pass up the opportunity to do so demonstrates the extent of public empathy and underlines the severity of the problem for the young.”
Research from the insurer Legal & General has suggested that parents will happily provide £5bn to helping out their children financially this year, which funds a quarter of all UK mortgage transactions.
Before the EU Referendum vote in June, the analysis by the treasury highlighted Brexit would have a negative impact on house prices, which would reduce the average price by between 10% – 18% by 2018 compared to their previous growth paths.
However, research has suggested that people aged over 55, even though they represent the largest share in property wealth, were more likely to vote yes rather than a no vote by the younger population. Although, there has been little concerning impact on house prices since the Brexit vote to date.
The Nationwide price index has actually increased during the month of August and the well monitored leading indication from the monthly survey of the Royal Institution of Chartered Surveyors (Rics) has also steadied after a drop in July immediately following the result.