Gifted or loaned deposits from the so-called ‘Bank of Mum and Dad’ remain crucial to the UK property market, with Savills suggesting that three in five first-time buyers are set to receive financial aid from parents to buy a home this year. This is the highest level since 2011.
Savills estimates that parents spent a whopping £8.8bn to help their children make their first step into the property market last year alone.The increase of almost £4bn since 2019 has largely been attributed to rising house prices, kick started by the COVID-induced Stamp Duty Land Tax break. But how are house prices faring, and could the Bank of Mum and Dad be stretched any further?
ConorMurphy, CEO and Founder, Smartr365 commented; “Though UK house prices have seena correction, valuations are still largely above pre-pandemic levels thanks to enduring strong demand from both domestic and international buyers.Nonetheless, many first-time buyers will be encouraged by the latest Rightmove House Price Index, which suggests prices are becoming more affordable, and considering whether now is the right time to snap up a bargain starter home.
Conor Murphy continues; “With many prospective buyers encouraged by this latest price correction [+0.2% against an annual average of +1.2%], it is especially important that mortgage brokers provide a transparent, efficient, and digital-led mortgage journey. Streamlining admin, lead flow, and productsourcing through mortgage technology tools will be vital to those looking to help as many customers as possible during this busy period. At the same time,these tools also provide a more transparent and efficient journey for the borrower, improving customer satisfaction and retention.”
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