The number of cash funded purchases of UK homes has hit a new post-recession high as the roles of Generation Rent’s Mums and Dads is growing.
The Intermediary Mortgage Lenders Association (IMLA) has revealed in a new research that the amount of cash going into the country’s property market has increased by 12% between 2015 and 2016 to £109bn.
https://www.buyassociationgroup.com/en-gb/2017/05/12/uptick-mortgage-enquiries/
Over the same period of time, the growth of mortgage lending only experienced an increase of 5%.
IMLA therefore showed that £418 out of every £1,000 spent on homes in Britain over the last year came in the form of cash.
This surge in cash buyers comes despite the Government’s attempt to intervene in the market and help first-time buyers onto the housing market, as well as increasing mortgage availability.
Peter Williams, executive director of IMLa, said:
“We are seeing a number of flexible product come to market to help make home-buying more accessible, for example using family guarantors, but there are limits to which flexible lending solutions can compensate for continuing structural flaws in the housing market with all the social implications that entails.”
It could take Generation Rent up to 59 years to make it onto the property ladder
And whilst Generation Rent continues its housing struggle, the country’s homeowners feel positive about the future.
A survey from property website Zoopla has revealed that 87% of respondents are confident that property prices will continue to increase in their area over the next six months to come. This shows an increase in confidence from late last year, when only 83% of homeowners expressed their expectations for a rise in value in the near future.
