Could Junior ISAs spark an FTB boom?

Could Junior ISAs spark an FTB boom?

New research has revealed that if savings into Junior ISA’s continues at the current rate young people’s worries about saving a large enough deposit for their first home could be solved.

Data from Office for National Statistics reveals the average annual savings into Junior ISA’s between November 2011 and 2016. The research was conducted by new home builder Strata to make predictions on the future of first time buyer behaviour.

According to the data, the average annual saving for accounts opened between 2011-12 is £1,623.

Assuming the accounts opened in 2011 were opened at the child’s birth, by 2029 their savings pot will be a significant £29,214. This research is evidence that Junior ISA’s could reduce the need for substantial support from the Bank of Mum and Dad later in life.

Born

Earliest Access

Average annual subscription (cash & shares)

Total savings

2011-12

2029

£1,623.00

£29,214.00

2012-13

2030

£1,327.00

£23,886.00

2013-14

2031

£1,340.00

£24,120.00

2014-15

2032

£1,141.00

£20,538.00

2015-16

2033

£1,248.00

£22,464.00


According to the spring 2017 Equity Release Market Report from the Equity Release Council, equity release lending grew by 34% between 2015 and 2016. Whilst the average annual savings into Junior ISA’s between 2011 and 2016 has decreased from £29,214 to £22,464.

Gemma Smith, Sales Director at Strata said, “Young people can choose to spend their trust fund on anything they desire but in the current climate with plights of millennials and the struggle to get a foot on the property ladder, first home deposits seem like a rational and likely investment.

Currently young people are asking their parents for support in the form of a lump sum towards their deposit or legal fees which has caused an increase in equity release lending but to put the property market in better health it would be beneficial for families to save smaller amounts for the child over a longer period of time.”

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Tony Gimple 09 Dec 2017

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Evelyn Attwood
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It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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