Do you ever scratch your head and wonder how first-time buyers manage to get on the property market? Where do they get their deposit from? How do they save for it? If you take a house at just £120,000, a 10% deposit is still £12,000. It is a lot of money to save.
Many first-time buyers are relying on the bank of Mum and Dad. It was the same in my day (I bought my first home in 1999). The difference then was my deposit was £6000 and we had to pay it back at a rate of £100 per week!
I was 21 when I left home and rented a flat in Garstang. I was 23 when I bought my first home in Knott End. The age children leave home now is generally between 25 and 27 years, and the average age to purchase a first property is 33. I’m not sure I would have survived that long in my little box room!.
The Institute of Fiscal Studies reports that £17 billion is gifted, or informally loaned each year, of which over half is used for property purchase or improvement. Virtually all money transfers come from parents aged over 50 to children in their late 20s and early 30s. The average gift for a property purchase or improvement is over £20,000.
How did you fund the deposit for your first home? Did you save up? I had help but had to pay it back. John saved up his deposit. Cassie saved up from her childhood savings. Her husband Steve sold his beloved Ford Escort. Chris had help from his parents. Rachel had a mix of savings and gifted help from her family.
There is one thing for certain. We’ve all needed help from our family over the years and the Bank of Mum and Dad has been around for a long time!
If we can help you with anything property related, please get in touch. At JDG we are here to help. You can email me at michelle@jdg.co.uk or call us on 01524 843322
Thanks for reading
Michelle
