Buying a house is an aspiration of many young people but it has never been easy. Even if you are in a position to be able to apply for a mortgage, you will need a deposit. There are also the costs of surveys and legal fees to take into account. This is why thousands of young people are asking their parents to help them get on the property ladder for the first time. Welcome to the ‘Bank of Mum and Dad’!
Bank of Mum and Dad
First-time buyers have struggled for decades to save up deposits to purchase their first homes. Recent research has shown that their situation is not getting any better.
Surveys carried out by Legal and General and Yopa have revealed that first homes in Britain cost an average of Ł237,655. If you want to save a 15% deposit to support your mortgage application, that means that you need to save Ł35,648. For many young people, that is simply impossible and so they are increasingly turning to the Bank of Mum and Dad to help them out.
How hard is it to get on the property ladder?
According to the BBC, young people are still struggling to get on the property ladder. Living costs are high which makes it very challenging to save for a deposit. This has resulted in many young people teaming up to try to get their first property and get out of the rented sector.
What help do first-time buyers need?
Whilst financial help is critical for first-time buyers, they also need easy to understand conveyancing news and information so that they can navigate the property market. This can be found on the websites of conveyancing specialists such as https://www.samconveyancing.co.uk/news/conveyancing, for example.
If you have never bought a house before, it can be a stressful and worrying time. An experienced conveyancing professional will explain all of the legal technicalities and make sure that you avoid the pitfalls. New buyers also need sound financial advice to make sure that they do not take on a mortgage that they are not capable of repaying.
Regional variations in parental help
Parental contributions to first-time buyers vary throughout the country. For example, in the South East, parents are contributing 59.4% of the deposit, whereas in the South West, parents are contributing 64.5%. Families in the North West are contributing even more. Their kids receive 87.8% and in Yorkshire and Humber parents contribute 91.6% of the full deposit. Overall, the kids who receive the highest contribution from their parents are those in the North East. Their parents give or lend them all of the deposit.