Parents pushing children onto the property ladderWednesday, 14 March 2012 11:56
It seems parents are strongly encouraging their offspring to fly the coup and buy their first home.
In 57 per cent of cases where first-time property buyers have gained financial help from their parents it is the parents who suggested the loan.
According to development company ECf’s research for the Merchant Gate Apartments development, parents are encouraging their children to get on the property ladder by offering them financial help.
While most would suspect it is the children requesting money of their parents the trend is actually the opposite way around.
“We found that the idea of purchasing a property is lead by the parents, rather than the child,” Pauline Sangster from ECf said.
“It seems that parents are all-too happy to assist their offspring to get on the property ladder and are positively encouraging this.”
While parents do want their children to be independent and well-established it seems incentives have been a factor in the push towards home ownership.
These pushy parents were on the rise in the lead up to the stamp duty holiday termination wanting children to take advantage of the concession.
But there is no doubt the government’s NewBuild scheme will also encourage them to lead another push so first-time buyers can opportunistically take up the high loan-to-value mortgages available.
“We’re interested to see whether this trend of pushy parents will continue,” she said.