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BSA: 53% think family should offer financial assistance to FTBs

Jake Carter

December 14, 2021

mortgages

More than half of people (53%) think older family members should offer financial assistance to their­ children or grandchildren when buying their first home, according to the Building Societies Association (BSA).

Only 28% of respondents disagreed; however, 58% of would-be first-time buyers did not expect any financial assistance from their older relatives, while 71% of parents expected to provide some financial help to the younger generation.

Around half (49%) of parents said they expect to leave a bequest when they die to the younger family members, but only 29% of first-time buyers were expecting this.

There is also a mis-match in expectations on giving and receiving a monetary gift towards buying a home, with 41% of parents expecting to do this, but only 24% of first-time buyers expecting it.

The BSA also found that parents under the age of 60 were less inclined to provide financial support to younger members of their family, compared to parents aged over 60.

While house prices have risen by around 10% in the last year, 45% of people said they expect prices to continue to rise, with just 13% expecting a fall.

Just 21% of people said now is a good time to buy a property, down from 26% three months ago, while a third of people (30%) did not think that now is a good time to buy.

Paul Broadhead, head of mortgage and housing policy at the BSA, said: “With house prices rising considerably more than inflation and wage growth, it’s not surprising that first-time buyers find raising a deposit the most difficult aspect of getting on the property ladder and something it is hard to keep pace with.

“But it’s clear that many families are more willing to share their wealth and give financial help than the younger generation appreciate.

“Perhaps families should use the festive period to talk candidly to each other about their future plans and aspirations and how best to use their inter-generational wealth.

“It could be the best present under the tree for all!”


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