The National Association of Estate Agents (NAEA) has reported that in June alone the market witnessed a 20% fall in the number of first time buyers. This is a 5% decrease on Mays figure and the lowest level recorded since May 2013. The report conducted on those aged between 18 to 30 years showed a definite first time buyer struggle as they represented only 3% of all house sales in June of this year, the lowest percentage ever recorded by the NAEA to date.
The managing director of NAEA has argued that “things are getting even tougher for first time buyers. Not only do they have to stump up ridiculously large sums of money in terms of deposits and stamp…but new rules mean buyers will also have to prove they can easily afford the repayments now and in the future…” As a result many young buyers are turning to the bank of mum and dad to get on the property ladder.
Buying a first home with the help of mum and dad is continuing to play an important role in aiding the purchase of their child’s first home. A study from Santander Mortgages has revealed that current homeowners have received on average approximately 49% of their deposit from their own parents or their partner’s parents. Further results showed that 68% of parents providing money towards a deposit will not receive anything in return as it was intended as a gift.
In addition to this almost 3 in 10 (29%) who received money from their parents were given it as an equivalent of an interest-free loan whilst only 3% contributed towards their child’s deposit as an investment. And for those that are yet to purchase their first home, the average amount children look to receive from their parents is £17,900. An estimated 34% of parents who have children will contribute money towards a deposit in order to help them on to the property ladder.
If you are a first time buyer looking to get your foot on the property ladder but find the prospect of entering the market daunting, LawStore Conveyancing can help you. LawStore Conveyancing offers expert and sound advice to those looking to buy or sell a property. Our on-board solicitors provide all the legal knowledge and support you need to keep you house move on track. To find out more or to get a free instant online conveyancing quote then visit us online today. Or simply call us on 0845 603 6544.