Grandparents helping more first-time buyers on property ladder
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.