Thursday 19th March 2015
The amount of first-time buyers reliant on the Bank of Mum and Dad for financial support has dropped significantly, according to new findings by Clydesdale and Yorkshire Banks’.
In 2014 under half of the nation’s first-time buyers required help in saving for their deposit, compared with 63% in 2013 and 78% in 2012.
Steve Fletcher, Head of Clydesdale and Yorkshire Banks Retail Network, commented: “It has been very encouraging to see the recovery of the property market with lending to first-time buyers at the highest level for seven years. It is also positive that the number of first time buyers relying on the Bank of Mum and Dad to get on the property ladder has decreased significantly.”
This, he added, reflects the rising availability of first-time buyer mortgages with a low deposit “as well as growing economic confidence particularly among house buyers”.
Clydesdale and Yorkshire Banks’ Annual First Time Buyers Survey also showed some clear regional first-time buyer differences, with just over a quarter (27%) receiving help from their parents in Yorkshire, whereas 57% sought financial assistance in the South West.
Adrian Gill, director of estate agents Your Move and Reeds Rains, believes the financial drain of clubbing together a deposit is being eased by a variety of economic factors.
“Wages are starting to recover and inflation has fallen to a record low, meaning buyers have slightly more cash to play with day-to-day,” he argued.
“And stamp duty fees were slashed for many new buyers when the government reformed the old slab system, freeing up further funds. It’s still difficult to save - with savings rates tied closely to the low base rate. But it’s easier to put cash aside than it was a year ago.”
He added: “Putting together a deposit to buy a property remains one of the most arduous tasks for prospective home-buyers, and schemes like Help to Buy are essential to allow the swathes of buyers reliant on higher LTV mortgages to get onto the housing ladder.”