Parents pushing children onto the property ladder

Wednesday, 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.
 

Helping a child buy their first home

Two thirds of parents across the UK have contributed money to their child’s first-home. According to research from Prime Location 63.4 per cent of empty nesters have contributed and average of £38,903 towards their children’s homes.

Property market sees start of summer activity

The property scene picked up speed in the second quarter of the year, with summer buyers entering the market, according to new figures. Connells Survey and Valuation said it has also seen a rise in remortgaging.

Remortgaging drops to lowest level in a decade

Remortgaging made up just 25 per cent of all loans in August, the lowest proportion in over 10 years, according to the latest figures from the Council of Mortgage Lenders.

NAEA reports further drops in number of first-time buyers

First-time buyers are still being priced out of the mortgage market, according to the latest figures from the National Association of Estate Agents.

Six months free heating with a Halifax mortgage

Halifax is offering £500 towards energy bills for all new mortgage customers this October, as the UK gears up for another cold winter. This offer is available for first-time buyers, home-movers and remortgaging customers who take out a plan between October 4 and November 5.

 

House Price Index

Energy Bill