In depressing British news of the day, apparently the good old Bank of Mum and Dad will help finance over a quarter of UK mortgages this year. That works out at parents giving their kids a whopping £5 billion for more than 300,000 mortgages to get them on the property ladder in the space of 12 months.
This points towards lots of things and none of them are good. Obviously, if you don't have a bank of mum and dad, you're fucked. We're relying on parental wealth to transcend our generation rent status and that's unlikely to happen if that financial getout clause isn't in place. Unlucky if you happen to be a working class millennial.
Secondly, as Nigel Wilson, chief executive of financial services firm Legal & General which carried out the research, said, house prices are ludicrously "out of sync with wages". No shit. Aged parents shouldn't be the only ones coughing up the money and offspring should have the chance to save up and support themselves. With house prices soaring across the country and particularly in London, alongside the rapid death of council housing, that's unlikely to change any time soon.
Soon, parents may not be able to help their kids at all. Wilson said that relying on parents will be unsustainable eventually. When it comes to London properties, parental contributions made up more than 50 percent of the wealth of the average household – excluding housing – in the capital. In other words, buying their kid a house in London is even hurting bouji middle and upper middle class parents.
Another bit of proof that home ownership is no longer possible through hard work. All in all: a massive disaster waiting to happen, and time to sign up for a ticket out of here.
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