Parents and grandparents support today’s first-time buyers
First-time buyers are relying on both parents and grandparents to help them on the ladder, according to research for Key Partnerships.
The equity release referral service conducted a survey among estate agents, which found nearly half (47%) have seen a rise in first-time buyers relying on financial support from two generations.
Just 18% of estate agents have not seen any increase in first-time buyers needing financial help in the past year.
Parents are slightly more likely than grandparents to be the sole financial backer for first-time buyers, the research found. Around 35% of estate agents have seen a rise in parental help while 32% report an increase in grandparents providing financial support.
Just 36% of estate agents are aware that equity release plans, which enable over-55s homeowners to access property wealth, can be used to help first-time buyers raise deposits.
Will Hale, director at Key Partnerships, said: “Increasingly it is taking two generations to help first-time buyers on to the housing ladder with Bank of Mum and Dad having to work with the Bank of Gran and Grandad.
“Estate agents are valued as a source of financial guidance and it is clear that those who can discuss equity release as a potential alternative fund-raising solution will be able to benefit from an additional revenue stream by referring potential clients to a specialist as well as securing more house sales.”