Grandparents helping more first-time buyers on property ladder

Jessica Nangle

September 14, 2017

More grandparents than parents are helping first-time buyers make their first move on to the housing ladder, research by Key Partnerships has revealed.

More than a third of estate agents have seen a rise in first-time buyers being helped by grandparents compared with 26% who report an increase in parents helping out children.

Approximately a fifth (21%) of estate agents say parents and grandparents help first-time buyers.

Will Hale, director at Key Partnerships, said: “The financial pressure on first-time buyers to raise the money for a deposit means grandparents are starting to play a bigger role than parents.

“Grandparents however need to think carefully about how they will fund grandchildren and plan ahead so they are not doing so at a cost to their own financial well-being in retirement.”

Almost half (49%) of estate agents believe equity release plans are a solution for first-time buyers.

These figures come after the Council of Mortgage Lenders reported the number of first-time buyers was up 8% in the past year.

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