Bank of mum and dad 'helps half of first-time buyers'
Summary
More than half of the people who bought their first house last year got financial help from their family, according to real estate company Savills. Their support averaged £55,572 per buyer.Key Facts
- Over 50% of first-time home buyers received financial help from their family last year.
- This financial support came in forms like loans and gifts.
- The average amount of aid given by families to first-time home buyers was £55,572.
- Last year, mortgage rates were high, causing young buyers to also face rising rent costs.
- Major changes in the stamp duty system caused a rush of new buyers before end of March.
- A Savills report states that around 173,500 first-time buyers received help in 2020, amounting to £9.6bn.
- The average mortgage rate for new two to five-year fixed mortgages in 2020 was between 5% and 6%.
- The increase in rent paid to private landlords was over 9% last year, forcing many to stay with parents.
- First-time house buyers now have to pay a stamp duty if the home they're buying costs more than £300,000.
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