Second-steppers see the biggest increase in gifted deposits since 2014

Second-steppers see the biggest increase in gifted deposits since 2014

New research from My Home Move suggests that second-steppers, the children of the Baby Boomer generation, are benefitting more from Gifted Deposits, as their parents enjoy the benefits of having bought a property at the right time.

Homemovers in their 40s, whose parents are most likely to belong to the Baby Boomer generation, account for almost 3 in 20 transactions using a gifted deposit.

Doug Crawford, CEO of My Home Move, said: “It’s not surprising that we are seeing more people using a gifted deposit in their 40s, especially as we know from our own research that there is a ‘missed generation’ of first-time buyers within the age bracket.

We’ve spoken previously about how the number of second-steppers turning to gifted deposits speaks to a lack of affordable housing or options for people wanting to move into bigger homes. Luckily, their Baby Boomer parents have benefited from the peaks and troughs of the housing market, so are more likely to be in a position to help their children move into their dream homes."

While those in their 20s were the only other age group to see an increase in Gifted Deposit use, the number using a gifted deposit to purchase a Leasehold property has declined by 3.1%. In contrast, those in the 40s and 50s saw a 0.24% decrease and 1.97% increase respectively.


Continuing, Doug said: “Leasehold properties are often specifically aimed at helping first-time buyers onto the market, such as Shared Ownership or New Build homes. However, when you consider that the parents of today’s first-time buyers would have been born in the 1960s/70s, it’s no surprise that Gifted Deposits may not be an option for these would-be homebuyers to explore. Their parents would often have jumped onto the market when prices were peaking, meaning they were unable to build as much equity in their property as the previous generation and won’t necessarily have the additional savings or income to be able to gift a deposit.

What is clear is that affordability is still a key issue in helping the market move. With second-steppers and middle-movers still reliant on gifted deposits and having to turn to properties that should be prime for first-time buyers, it’s clear that taking the next step is becoming increasingly difficult without the help of others. As previous generations have clearly learnt, jumping onto the ladder at the right time so that equity can build over time is the only sure way of making sure your next step is easily obtainable.”

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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...

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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.

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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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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...

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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...

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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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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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