FindaProperty survey: First-time buyers depend on loans from parents
65% of first-time buyers planning to pay back parents won’t repay with interest
11% of first-time buyers got £50,000 or more from parents
Over half (52%) of parents who have provided money to help their children get on the property ladder will get nothing back on their investment – that’s according to research into the state of the ‘Bank of Mum and Dad’ by property portal FindaProperty.com.
FindaProperty.com asked people who have bought a property with their parents’ help in the past five years and over half said they won’t repay a single penny to them. The average first-time buyer in the past five years received £22,669 from their parents, its research found.
Nearly two-thirds (65%) of first-time buyers planning to pay back their parents said they are not planning to repay them with interest. Nearly a fifth (18%) of buyers said they plan to repay their parents in less than two years, but 12% said it would take more than five years.
Sixty-one percent of first-time buyers said their parents had given them up to £20,000 to help them buy their home, with 32% getting more than £20,000. Incredibly, 11% of first-time buyers got more than £50,000 from their parents towards their home purchase.
FindaProperty.com’s survey found that 16% of people who bought a property in the past five years have had financial support from their parents. And a very similar amount of wannabe first-time buyers, 17%, expect to get help from the Bank of Mum and Dad in the next five years.
The research also found that first-time buyers need more support from the Bank of Mum and Dad than they originally expected. Before they bought their property, nearly half of first-time buyers (46%) thought they would need less than £5,000 from their parents to help with the purchase. But after the purchase only 22% receive up to this amount, with most buyers getting much more.
However it seems that parents understand the need to give their children financial support. When asked what the attitude of their parents was when they gave them money, 42% of first-time buyers said that their parents understood it was the only way they could afford to buy a property. Another 30% said their mum and dad saw it as part of being a parent, while 20% saw it as an investment in their child and 8% as an investment in the property.
Nigel Lewis, property analyst from FindaProperty.com, said: “Our research found that roughly the same proportion of first-time buyers today are relying on their parents to help them onto the property ladder as they have in recent years, but the cost of that help is growing steeply. Buyers assume they might only need a few thousand pounds from mum and dad, but quickly find they need tens of thousands instead.
“In the past couple of years many mortgage companies have increased the deposits they require, and banks have become less willing to make cheap loans available, so parents have taken up the slack and become an easy source of money – the advantage for their kids being that they have little expectation of ever seeing a return on their investment.”
FindaProperty.com is a leading property website with a comprehensive search facility for house-hunters looking for property to buy or rent.
The site also holds independent editorial on the housing market, as well as guides to different aspects of the buying, selling and renting processes. These contain local information about council tax rates, school tables, crime rates, comments from local residents and photo albums, giving a general feel for an area.
Launched in 1997, FindaProperty.com now publishes the details of over 750,000 properties from over 11,000 agents, attracting 4 million unique visitors and generating 74 million page impressions a month.
FindaProperty.com has tools to make home hunting easier including the ability to add notes to properties of interest, check out distances from properties to key places, and search recent property sold prices.
FindaProperty.com is recognised as a leading source of consistent and reliable UK housing market data.
For further information:
Citigate Dewe Rogerson
0207 282 2815
Lees House 21-23
Brighton BN1 3FE
This release was published on openPR.
Permanent link to this press release:
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release FindaProperty survey: First-time buyers depend on loans from parents here
News-ID: 155830 • Views: 1215
More Releases from FindaProperty
Homes in Britain’s biggest cities are worth £2.64 trillion
London is most valuable with Glasgow in second By head of population Manchester is in second place The homes in Britain’s ten biggest cities are worth £2.64 trillion – according to the latest analysis from property portal FindaProperty.com Its calculation is based on the value of every home, from studio lofts through to luxury mansions, in the ten most populous cities in the country. Assuming they were all sold at their current market value,
UK PROPERTY HUNTERS HIT RECORD NUMBER IN AUGUST
14th September 2010: More people were looking for a new property in August than ever before, according to website FindaProperty.com. It saw record numbers of potential home buyers searching for properties on its site last month, despite concerns over the fragility of the housing market and fears of a possible ‘double dip’ in house prices. August is traditionally one of the quietest months of the year in the property market, but FindaProperty.com
OLYMPIC BOROUGH HOUSE PRICE GROWTH DOUBLE OTHER LONDON BOROUGHS
4th October 2010: Asking prices for properties in the five Olympic boroughs have grown twice as fast as the non-Olympic London boroughs in the last year, new research from FindaProperty.com shows. Between September 2009 and September 2010, the average asking price for properties across the Olympic boroughs of Greenwich, Hackney, Newham, Tower Hamlets and Waltham Forest increased by 3.0% from £276,751 to £284,936. In the same period, prices in the non-Olympic
BBC MOVE HELPS STRENGTHEN NORTH WEST PROPERTY PRICES
The North West of England was the only region of the UK to see an increase in property asking prices last month, according to FindaProperty.com’s House Price & Affordability Index. FindaProperty.com is putting the rise down to the influx of around 2,500 BBC employees moving to Salford’s MediaCity UK from London. While average asking prices across the UK fell by 0.5% in August, prices in the North West rose by 0.1%.
More Releases for Mum
Wooden Crib Market Report- Size and Forecast 2027 | Top Key Players – MOULIN R …
The global Wooden Crib Market research report is beneficial to build business strategies or modify business expansion plans by utilized substantial growth offering developed and emerging markets. Moreover, Wooden Crib Market provides various analyses to strive in the Wooden Crib Market; one of the analyses called Porter’s five force analysis used in Wooden Crib Market report unveils the intensity of the competitive rivalry and bargaining powers of buyers and suppliers. Get
Hertfordshire Families Benefit from Website Launched by Savvy Business Mum
(MONDAY 19th OCTOBER 2020) Today, Mum’s the word as a local mum from Hitchin launches an essential online guide to help families. Little Ankle Biters Hertfordshire is a free website for every member of the family providing trusted reviews of the best activity clubs, days out, classes and child friendly pubs & restaurants, all supported by great tips and advice about how to entertain kids across Hertfordshire. It is easy
Global Plastic Pumps Market 2017 - Yamada, PENTAIR, Iwaki, MUM Industries, ProMi …
Apex Research, recently published a detailed market research study focused on the "Plastic Pumps Market" across the global, regional and country level. The report provides 360° analysis of "Plastic Pumps Market" from view of manufacturers, regions, product types and end industries. The research report analyses and provides the historical data along with current performance of the global Plastic Pumps industry, and estimates the future trend of Plastic Pumps market on
Treat Your Mum to a Holiday with Amari
Bangkok, Thailand. – Treat your mum to a special unforgettable getaway! Amari makes it easier for daughters and sons to spoil their mums with packages designed to get families together to create new memories and connect with new destinations. For ‘The Young at Heart Mum’ – Light up her adventurous spirit with the ‘Koh Samui Wanderlust Package’ at Amari Koh Samui. Share the fun by exploring the island
Struggling single mum bags online success with Perfect Handbags
Single mum of two, Julie Ireland, has fulfilled her ambition of launching her own online company, Perfect Handbags. Julie bravely took a leap of faith in the middle of the recession with the odds stacked firmly against her. At one point facing financial ruin, Julie has now forged a successful career in the online retail market and is forecasting a turnover in excess of £500,000. Julie, an IT consultant, combined a
Single mum seeks to inspire people to move home again
The stress of moving home, sky high property prices, tough lending criteria, unemployment and a struggling global economy have all contributed to the near collapse of the property markets all over the world, bursting the worldwide property bubble that we saw before 2007. With a slow recovery being reported by financial institutions everywhere, it’s little wonder that those green shoots are taking a long time to grow back and bloom into