{"id":17149,"date":"2018-05-31T17:00:11","date_gmt":"2018-05-31T16:00:11","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=17149"},"modified":"2018-05-31T17:00:11","modified_gmt":"2018-05-31T16:00:11","slug":"bank-mum-dad-helping-more-than-ever-property-ladder","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-us\/2018\/05\/31\/bank-mum-dad-helping-more-than-ever-property-ladder\/","title":{"rendered":"Bank of Mum and Dad helping more people than ever onto property ladder"},"content":{"rendered":"

One in four property transactions this year are expected to involve borrowing from parents to fund the purchase, but the amounts of money being borrowed are falling.<\/strong><\/p>\n

Grown-up children are relying on cash from their parents<\/a> to help get them onto the property ladder, with an estimated \u00a35.7bn expected to be forked out to purchase homes to the tune of a total \u00a382bn by the end of 2018.<\/p>\n

This is according to data from Legal & General, which estimates that 319,000 prospective buyers<\/a> will get help from their parents, with three out of five under-35s getting a helping parental hand. Surprisingly, even 8% of over-55s are getting help from their families to buy property<\/a>.<\/p>\n

As baby boomers tend to have more stashed away than millennials<\/a>, while house prices as a proportion of average salaries are more disparate than ever, it is perhaps no surprise that families are pooling their finances<\/a> and helping each other invest in bricks and mortar.<\/p>\n

Stamp duty cuts might be helping<\/h4>\n

Yet the amounts being lent out are declining, with the average homebuyer now borrowing \u00a318,000 from their parents, which is \u00a34,000 (or 17%) less than it was this time last year. However, this could be due in part to the effects of the stamp duty cut<\/a> for first time buyers which has been in effect for the past six months, bringing down the total cost of buying a home for first-timers.<\/p>\n

There are other ways for people to get onto the property ladder without borrowing from parents, such as lifetime ISAs<\/a>, Help to Buy ISAs, shared ownership schemes and Help to Buy<\/a> loans – all of which come with various criteria and requirements but can provide a big boost for those trying to save for a deposit for a home.<\/p>\n

Families can also help their children in more ways<\/a> than just handing over the cash for a deposit, such as by taking out a\u00a0joint borrower sole proprietor mortgage or a multiple generation mortgage with their child. Inheritance tax rules could also be set to change, affecting how much money can be gifted to offspring.<\/p>\n","protected":false},"excerpt":{"rendered":"

One in four property transactions this year are expected to involve borrowing from parents to fund the purchase, but the amounts of money being borrowed are falling. Grown-up children are relying on cash from their parents to help get them onto the property ladder, with an estimated \u00a35.7bn expected to be forked out to purchase… Read more »<\/a><\/p>\n","protected":false},"author":1069,"featured_media":17161,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4,6],"tags":[90,341],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/17149"}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/users\/1069"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/comments?post=17149"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/17149\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media\/17161"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media?parent=17149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/categories?post=17149"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/tags?post=17149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}