The news has often featured the struggles first-time buyers face and the major issue for many is raising the deposit.
According to Legal & General parental contribution has now reached £6.3 billion to help their offspring get on the property ladder. Parental contribution is forecasted to reach £10bn by the end of 2019. Support to family members has increased by £6K to £24.1K.
Sources of parental contribution:
- 53% handed over cash whilst 9% were cashing in lump sums from pension savings.
- 7% were using pension drawdown and 6% were drawing on their annuity.
- 15% acknowledged they had accepted a lower standard of living to be able to contribute their offspring’s first home.
First-time buyers are adopting the use of brokers to gain access to whole of the market. Over three quarters of first-time buyers who used a broker said they would do so again according to data provided from Aldermore. 39% of first-time buyers used a broker because a friend or family member had recommended the broker. 31% was due to the broker having access to the whole of the market and 24% of first-time buyers were not sure where to start. This is welcoming news for the industry as it can open doors for first-time buyers who often give up on the idea of homeownership.
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