East Anglian families are helping younger generations onto the property ladder
According to the high street lender Halifax, more first-time buyers climbed on to the property ladder in 2016 than in any year since 2007, but would-be home owners now need to raise more than £32,000 for a deposit.
Deposit sizes have more than doubled over the last decade to 16% of the price of a typical first home (25% in London).In 2016, the average house price paid by first-time buyers was £205,170 (£402,692 in London) – the highest on record. The number of first-time buyers last year was 75% higher than a low point in 2009, but 17% below a pre-crisis peak in 2006. Meanwhile, about 28% of all first-time buyers with a mortgage opted for a 30 to 35-year term – up from 11% in 2006.
Also, an article in The Telegraph reports that analysis of the data shows the total number of first-time buyers paying stamp duty has risen to 71%, from 121,455 in 2013 to 238,382 in 2016.
Simon Parker, who leads the Ashtons’ Norwich Residential Property team, comments: “Latest figures from Zoopla show that average overall house prices in Norfolk and Suffolk have almost reached £250,000. It is therefore not surprising that we are seeing not only first time buyers needing larger deposits and longer mortgage terms in many of our transactions, but are also noticing the deposit funds being provided are from a wider variety of sources. These often include early inheritance, gifts or loans from the ‘Bank of Mum and Dad’. These arrangements raise a number of issues, all of which have to be addressed as part of the home buying process. We are always happy to assist and advise our clients to ensure that they secure the home they want and their money is invested safely for the future.”
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