Bank Of Mum And Dad Will Drive Housing Market Recovery

The Bank of Mum and Dad will be a key driving force behind the post-coronavirus recovery within the UK housing market, according to new analysis. Nearly one in four housing transactions – 23 per cent – will be supported by the Bank of Mum and Dad (BoMaD), a four per cent rise since 2019, according to Legal and General. And 24 per cent of borrowers are now more reliant on financial support from family due to the pandemic. Read more on the City AM website.

https://www.cityam.com/bank-of-mum-and-dad-will-drive-housing-market-recovery/

Bank Of Mum And Dad 'One Of UK's Biggest Mortgage Lenders'

Parents spend so much money to get their children onto the housing ladder that they are now among the biggest lenders in the UK, a survey suggests. The average parental contribution for homebuyers this year is £24,100, up by more than £6,000 compared to last year, according to Legal & General (L&G). Collectively parents have given £6.3bn, high enough to rank the bank of mum and dad 10th if it was a mortgage lender. Clydesdale Bank, the UK's 10th largest mortgage lender lent £5bn last year. Read more on the BBC website.

https://www.bbc.co.uk/news/business-49477404

Record Numbers Rely On Parental Cash To Buy A Property

The number of first-time buyers relying on the "bank of mum and dad" for financial help has hit a record high, according to new research. Analysis for the Social Mobility Commission suggests that more than a third of homebuyers in England depend on money from their family. Using the latest official data available, from 2013-14, researchers found 34% of buyers needed cash or a loan from their parents. That compared with just 20% in 2010/11. A further 10% of buyers relied on inherited wealth, the research found. Read more on the BBC website.

Over-55s Also Being Hit By The Housing Crisis

The spiralling cost of homeownership in the UK has continued to see many priced out of the market, with those fortunate enough drawing on the bank of mum and dad as the only option in getting that first foot on the ladder. However, research by estate agent, eMoov.co.uk, has found that it isn’t just those at the start of the property ladder struggling to get by in the current economic climate, but also those in the later stages of life are having to draw equity from their property in order to survive. There has been a dramatic increase in people over the age of 55 drawing on the equity of their property in order to get by. £17bn of funding has been provided to 350,000 homeowners since 1991, a third of which has been released in the last five years alone. Read more on the emoov website.

First Time Buyers Helped By the Bank of Mum and Dad Receiving £23k Each

UK parents give an average of £23,000 when helping their children with a deposit to get onto the property ladder, according to new research from Shelter. Highlighting the increasing strain on the Bank of Mum and Dad, the same poll also found that a fifth of parents helping their children onto the housing ladder had done so using savings set aside for retirement or elderly care. However, for the majority of parents – already feeling financially squeezed themselves – being able to help their children buy a home just isn’t possible. Our research shows that 60% of UK parents are unable to save any money for their children’s future. Read more on the Shelter website.