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A survey reveals that a fifth of home owners taking their second step on the property ladder have received financial help from family members or friends.
The research highlights how the “bank of mom and dad” may be called upon more than once by an adult child for help buying a home.
According to Barclays’ Property Insights report, 30% of first-time home buyers said they have received financial help from family and friends, while the same is the case among 20% of those taking their second step on the property ladder.
First-time buyers who received this extra help received an average of £76,239, while “second-time movers” received £81,451 to buy their home.
And almost three in 10 (27%) homeowners who received financial help for their second or third home also report receiving support for their first property.
Among those who received financial help, the most common aids were outright gifts from parents, inheritances, and loans from family or friends.
Nearly half (52%) of tenants surveyed also said it would be impossible for them to buy a home without an inheritance or loan from a family member.
One in six renters (16%) said they plan to buy a property in the next year, but more than two-thirds (68%) of these potential home buyers said property prices are a barrier to achieving that goal. Six in 10 (59%) also said they were struggling with “moving goalposts”, moving savings targets to keep pace with rising house prices.
Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “Our latest data highlights a market in transition. While first-time buyers are often thought of as the main beneficiaries of mum and dad’s bank, the reliance of second-stage buyers on family support underlines the impact of cost-of-living pressures on all sections of the market.”
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Julien Lafargue, chief markets strategist at Barclays, said: “With the Budget now published, there has been improved clarity allowing economic actors to start planning ahead. For the property market, this should mean a greater level of activity as we head into the new year.
“That said, affordability remains a challenge that can be addressed through a combination of low interest rates, greater housing availability and financing innovation.”
Barclays commissioned Opinium Research to survey 2,000 people across the UK in November and December.
Anisha Beveridge, head of research at property firm Hamptons, said: “The Bank of Mum and Dad is no longer just a lifeline for first-time buyers – it is increasingly supporting second and even third stage buyers too.
“Upsizing has become significantly more expensive in recent years, mainly because house prices have increased much faster than flat prices.
“Traditionally, homeowners borrowed more to cover the higher purchase price and stamp duty bill, but with mortgage rates still high, increasing affordability has become far more difficult and more expensive.
“As long as rates remain above the ultra-low levels of the last decade, family assistance looks set to become a more permanent fixture of the housing market.”