Facing the future without the 'bank of mum and dad'

Facing the future without the "bank of mum and dad"

Chari said she was having to spend the money she had put aside for the future just to get by now.

The prime minister highlighted the difficulties facing young people who cannot depend on the "bank of mum and dad" as a lead-in to Labour's annual conference.

The Your First Home scheme will provide a government-backed loan covering 20% of the purchase price, with a minimum deposit of 2.5%.

But how hard is life right now for young people who have finished school and are trying to build a future?

Chari said choosing financial security instead of following a dream was "heartbreaking".

Chari, 19, from Hertfordshire, spent part of her childhood in care but has recently begun university and hopes to qualify as a doctor of psychology.

At the moment, she says, the main challenge is simply getting through the next few years.

"I receive universal credit and that's usually what I would use to pay for my housing in Hertfordshire, but they've cut it off this month because I'm moving to university and they think SFE [the student loan] will cover it.

"SFE is delayed, so I have no money this month whatsoever - I'm three days in and already I'm in debt."

She added: "I'm dipping into savings I had planned to afford a future for myself just to get by now.

"As a care leaver, you don't really get that chance to save money for your future or make future plans."

Chari thinks her dream of a doctorate may need to be delayed while she takes up a career - and a salary - in banking.

"It's heart-breaking," she said, adding: "I don't think somebody should have to choose financial stability over pursuing their dream."

Elliot does not believe they will ever earn enough to buy a house.

Elliot, 18, is also from Hertfordshire and lives with their parents, but wants to move out.

"I've been looking for places because I'm in college and I plan on going to uni, but it's just that things keep rising and the bills keep getting more and more," they said.

"I don't think I've ever expected to be able to buy a house at all. It would be nice to own my own place, but will I actually earn enough to be able to?"

As they approach 19 in a couple of months, Elliot believes they will have to pay for their studies.

"It's about £1,500 to £2,000 just for the course and I've got to get there and back every day," they said.

"In the area that I live, one of the main things is if you don't have the education, you're probably not going to get out of the place.

"It's quite a low-income area. I would like to go to uni but I think 'can I afford it?'"

The government said the Your First Home scheme would "help tackle the deposit barrier for first-time buyers who would be unable to afford their first home otherwise, building on the government's existing work to help more young people and families onto the housing ladder".

The Conservatives warned that the policy could leave first-time buyers taking on more debt and risked "pushing up the price of new homes".

But the prime minister said it would be designed to help those without support from the "bank of mum and dad".

Burnham said: "Too many young people are struggling with the cost of housing, with many giving up hope of ever having a home to call their own.

"So we will step in to help more first-time buyers on to the housing ladder."