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.”

Join our mailing list:

Leave a comment



Latest Comments

Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

view article
Evelyn Attwood
Evelyn Attwood 01 Dec 2017

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.

view article
Evelyn Attwood
Evelyn Attwood 01 Dec 2017

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

view article
Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

view article
richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

view article
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.

view article
maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

view article
maggie swift
maggie swift 09 Oct 2017

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

view article
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...

view article
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...

view article
Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

view article
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

view article

Related stories

More articles from Finance