With house prices rising, deposits greater and salaries staying the same, it’s hardly surprising that the Bank of Mum & Dad is Britain’s best loved financial institution.
For the first time in generations home ownership is at its lowest ever, therefore aspiring homeowners find it impossible to buy without help from family. On average families contributed 37% towards the home of their loved ones, some releasing the equity in their own home to foot the bill and taking advantage of lifetime mortgages as the ideal solution.
As an interest-free loan, some parents are protecting their investment by suggesting that young couples enter into a pre-nuptial agreement prior to marriage in case the marriage breaks down.
Despite this, the demand for homeownership is growing at a faster rate than the construction of homes and the need for quality homes that meet the housing requirements is in crisis.
However, the Bank of Mum & Dad is not ideal as it fails to support those whose parents are less wealthy and unable to offer assistance, but the prospect still believes that there should be help available to enable them to buy their own home.
Without the growth in wages, the amount of help required will increase with an estimated average of 51% contribution towards a loved one’s home by 2035, but how sustainable will this be, particularly with people living longer and despite the willingness to release equity where available, the next generation of parents could find themselves running into liquidity issues when trying to help their own children step onto the property ladder.
Ogilvie Homes offer a choice of properties to suit all needs, along with a selection of incentives and are happy to offer help and advice to any parents looking to invest in one of their properties for rental or otherwise.
Take a look through the website to see the vast choice of properties and locations available.