Despite the climb out of the “Recession”, the UK still finds itself in the midst of a Housing Crisis! At Mortgages Remortgages - Doncaster Fee Free Mortgage Adviser, we know that demands are high and still exceeds the supply of homes in many areas of the Doncaster region.
Despite the climb out of the “Recession”, the UK still finds itself in the midst of a Housing Crisis! At Mortgages Remortgages - Doncaster Fee Free Mortgage Adviser, we know that demands are high and still exceeds the supply of homes in many areas of the Doncaster region, young people for example, are constantly looking to get their foot in the property market for the first time, but some are struggling to even fund their first home purchase.
For many years, the ‘Bank of Mum and Dad’ have assisted young people in buying their first home with a small loan or contribution perhaps towards the initial deposit, however in recent years there has been a marked increase of Gifted Loans to young people in order to help them achieve their ownership goals.
Recent reports suggest that the Bank of Mum and Dad are in fact lending more than ever in 2019, despite the number of home purchases actually decreasing. Researchers predict that this is due to several factors including ever increasing housing costs, and also first-time buyers electing to choose three or four bedroomed homes as opposed to one or two bedrooms which has been more common in the past.
Interestingly however it no longer appears to be just first-time buyers relying upon family contributions to help them with their home purchases. According to this same data, there has been a rise in the number of older buyers reaching out to parents or family members to help them out financially with the purchase of their next home. It is expected that the percentage of over 55s requiring financial assistance from their families to purchase their next home will rise by 14% in the coming years.
While it seems obvious – increasing the number of new homes built each year – the reality is that there are other factors affecting house building across the country including a lack of suitable land being identified for housing. If more suitable sites were to be released to house builders for residential development, the nation could see an uptick in the quantity of new homes built each year and this would go some way to helping alleviate the pressures on the housing market.
For many members of the ‘Bank of Mum and Dad’, retirement plans are likely to mark financial strain as you will be caught between supporting your child and caring for your ageing selves’. This increasingly applies to those in their 40s, 50s and early 60s – a group often referred to as the ‘sandwich generation’.
Supporting an adult child or ageing parent may come at the expense of your original retirement plans. And with finances pulled in different directions, the amount you will be able to eventually pass on could be significantly impacted. Indeed, today’s working population is expecting to leave much less of their retirement pot to family members compared with the current crop of retirees.
According to research by Mortgages Remortgages – Fee Free Mortgage Advisor, those with £50,000 or more in household assets who are not yet retired expect to pass on £74,000 as an inheritance – a third of their savings. This is down from the £125,000 those already retired expect to pass on.
A quarter of future retirees expect to be financially supporting family members, up from 7% currently. Everyday living costs, school or university fees, and childcare topped reasons why people expect to be supporting loved ones in retirement. Young adults may return home to live with their parents, or require financial and emotional support. Elderly parents may move in with their children, or need help to move into assisted living. Either way, obligations placed on the sandwich generation demand considerable time and money.
At Mortgages Remortgages - Doncaster Fee Free Mortgage Adviser, we focus on providing familes the best Mortgage Advice and tips on Gifted Mortgages in and around the area. To learn more about anything mentioned in this article, or to learn more about Mortgages Remortgages and what we do, please do not hesitate to contact us via email at firstname.lastname@example.org or via telephone on +44 (0)1302 361 361
Also, watch our latest video with First-Time Buyer, Josh Saunders: