Bank of mum and dad has growing influence on UK property market

[Nicholas Wallwork]

A report by Legal and General in conjunction with Cebr has highlighted the growing influence that parents have upon the UK property market. The research shows that a phenomenal £5 billion a year is received by offspring from their grandparents and parents. To put this in perspective, this £5 billion worth of finance allows the

Click to Read The Full Story and Add you Own Comments to Continue reading...

 

[nmb]

Will the bank of mum and dad become an even greater influence after the recent mortgage regulation adjustments? It is a shame that many people will not be able to climb aboard the property ladder in the years to come as not all will have access to a bank of mum and dad.

 

[lookinginvest]

Not everybody has access to the bank of mum and dad. Will property ownership become something only the middle classes can afford in the future?

 

[Veronica]

My eldest son has a well paid job and his wife also works but they are unable to save enough for a down payment in the area they live in. They can't move to another area as their jobs are immovable. On the other hand my youngest son who dosn't work due to ill health has managed to buy a property because his wife was able to get a transfer in her work to an area where properties are cheaper. They look on this as a short term measure which they hope will enable them to resell in a few years time and move to a better area. This is one way that young couples whose parents cannot help them to purchase should maybe consider in order to get a foot on the bottom rung of the housing ladder.

 

[nmb]

I totally agree Veronica, the key is getting yourself on the property ladder in the first place and then slowly moving upwards. It is unfortunate that employment hotspots always push local property prices higher making them unaffordable for many first-time buyers.