1 Oct

Parents add £23 billion into the property market

Parents add £23 billion into the property market

Parents across the UK are helping their kids more than ever when it comes to getting a foot on the property ladder with estate agents, it has been revealed.

According to the latest results of a study from HSBC, parents have helped their adult children to the tune of a collective £23 billion over the three-year period between 2008 and 2011.

However, this value may drop in years to come, thanks to the fact that new schemes such as FirstBuy have made it more affordable for first timers to get a foot on the ladder.
In those three years up to 2011, HSBC said that parents had helped to finance 100,000 mortgage deposits from their savings.

It said that without this, some 18.7 per cent of all transactions would not have been able to go through, as first timers struggled with their deposits.

Peter Dockar, head of mortgages at HSBC, said: "It is obvious that the ‘bank of mum and dad' has stepped in to plug the gap left by those banks and building societies who have constricted their lending in recent years, which means that family support has become an important element of the post-crisis financing mix."ADNFCR-1222-ID-801460530-ADNFCR

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