The research also shows that 82% of middle class parents want the banks compelled to do more to help first time buyers, such as reducing the large deposits now routinely required.
The poll, published on the first day of the Federation’s annual conference, shows that the depth of the housing crisis now gripping the country is having a direct impact on the middle classes, and the ability of middle class young adults to compete in the housing market.
The survey of 503 middle class parents, with offspring aged between 20-30, found that 59% of affluent mothers and fathers believe they will have to dip into savings or retirement funds to help their children buy a new home.
The study found that 52% of middle class parents feel there is now a social expectation that parents will provide a deposit for their children to buy a home.
According to the poll, 57% believe their eldest child will need a deposit of least £20,000 in order to enter the housing market.
Federation chief executive David Orr will unveil the findings at the organisation’s annual conference, which is being held from today (Wednesday) until Friday (22 September) in Birmingham, at the ICC.
Mr Orr is due to tell delegates: ‘The fact that 63% of middle class first time buyers will not be able to buy without recourse to the Bank of Mum and Dad is shocking.
‘The findings of this research show that the growing housing crisis – with supply not meeting demand – is affecting people from all sections of society.
‘Not only are millions of people now on waiting lists and living in overcrowded conditions, but the majority of middle class first time buyers cannot get a foot on the housing ladder without substantial help from their parents.
‘Over the years, we simply have not built enough homes for the demand that is out there. Last year, only 113,000 new homes were built across England, which is the lowest figure since 1923.
‘The Government needs to do more – at this time of widespread cuts – to protect the provision of housing.
‘As the Government considers cutting public spending, ministers should avoid drastic cuts to the housebuilding budget. Our research shows a cut of 40% to the budget would slash the number of planned new affordable homes for England by 230,000 up to 2020.’
He added: ‘The Government should also consider compelling the publicly-owned banks to make more funds available for mortgages for shared ownership homes – which cater for people who are unlikely to be a priority for social housing but not affluent enough to buy homes without significant support from their parents.’
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