More FTBs helped by grandparents than parents

More FTBs helped by grandparents than parents

New research by equity release referral service, Key Partnerships, has revealed that 34% of estate agents have seen a rise in first-time buyers being helped by grandparents compared with 26% who report an increase in parents helping out children.

Around a fifth (21%) of estate agents say first-time buyers are being helped by parents and grandparents.
 
Mortgage experts are warning the growth rate of first-time buyer numbers will slow this year after hitting record levels in 2016 although the Council of Mortgage Lenders says the number first-time buyers was up 8% in the past year.
 
Key’s study shows estate agents share the concern – half (49%) of those questioned say they are worried about the withdrawal of Government schemes to help first-time buyers. The Help to Buy mortgage guarantee scheme funding lenders offering higher loan-to-value loans ended at the start of the year but equity loans and Help to Buy ISAs continue.
 
Estate agents are increasingly aware of the role of equity release plans in helping grandparents release money to help first-time buyers – 60% of those questioned know it can be used to support first-time buyers and more than half (54%) are interested in finding out more.
 
Around half of estate agents (49%) believe equity release plans are a solution for first-time buyers and 52% say they would highlight them as a solution if they had a relationship with a specialist adviser.
 
Will Hale, director at Key Partnerships, said: “The financial pressure on first-time buyers to raise the money for a deposit means grandparents are starting to play a bigger role than parents.


Grandparents however need to think carefully about how they will fund grandchildren and plan ahead so they are not doing so at a cost to their own financial well-being in retirement. That should include looking at releasing equity from their homes.  
 
Estate agents are valued as a source of financial guidance and those who can discuss equity release as a potential alternative fund-raising solution will be able to benefit from an additional revenue stream by referring potential clients to a specialist.”

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Latest Comments

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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Paul Edwards
Paul Edwards 27 Sep 2017

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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RyanGeo
RyanGeo 18 Sep 2017

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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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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