Are first-time buyers dipping their toes into the market?
While there are differing opinions as to the current state of the UK property market, figures from the Council of Mortgage Lenders (CML) seem to indicate that the bank of mum and dad is being used more and more to fund the purchase of property for children. Interestingly, the last CML report on this subject back in 2007 highlighted the fact that 37% of first-time buyers under the age of 30 depended upon their parents for financial assistance, the figure has now risen to 80%.
This 80% figure is the highest on record and either indicates that first-time buyers are struggling to cover their deposits and initial mortgage costs or more and more people are seeing the UK market as offering excellent value and are determined to jump in before a full-scale recovery. It is debatable as to which of these opinions and potential outcomes is correct, but one thing is for sure, the cost to parents of assisting their children continues to grow and grow.
As we covered in one of our earlier post, we are in an era where many parents managed to put money aside for their savings and benefited from the very buoyant property market. Whether the next generation of parents will be able to assist their children in the same manner remains to be seen.
Share this..
Related stories
Greek government bonds downgraded to junk status
Just when investors thought the Greek situation was under control it has been revealed that Moody's has downgraded Greek government bond ratings to junk bond status. The company believes that not only will the Greek authorities suffer from problems with their own economy but problems within Europe will impact upon the short term bailout package and could see the country asking for more assistance...
Read MoreStandard Life announces 500 job losses
Edinburgh-based insurance and pensions giant Standard Life has today announced 600 job cuts over the next 15 months although the company did confirm that an additional 100 new posts would be created. The vast majority of the job losses, around 480, are expected to come from the company's Edinburgh offices with the remainder spread across the UK as a whole. Like so many financial companies in th...
Read MoreIrish economy appears to be in freefall
The Irish economy appears to be in freefall today with the central bank suggesting there will be a fall of 6% in Ireland's gross domestic product this year, which is a whole two percentage points greater than forecasts only a few weeks ago. However, more alarmingly the 6% reduction is also under review and may well be increased in the weeks and months ahead. After a period of substantial growth wh...
Read MoreOver half of Britons do not have a will
11/09/2014 New research has found that 28.7 million British adults have not yet written a will. The study, conducted by unbiased.co.uk, shows more than half of the population has not yet written a will. This leaves the sorting out of assets to the state, which can mean months of delays and inconvenience before loved ones are told what will happen. These are known as intestacy rules, and eve...
Read MoreWomen make a success of property investments
According to a new study conducted by Bradford & Bingley, women are just as successful and ambitious as men when it comes to property investments.The study found that over three quarters of female property investors manage to hold down day jobs, as well as manage their investment properties and a quarter said that they intended to expand their sideline by investing in further properties within the...
Read More