FabSwingers.com forum: Bank of mum and dad

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An average of £55,572 was given in loans and gifts by the ‘bank of mum and dad’ to first time home buyers.

The annual report by Savills suggests that 52% of first-time buyers received assistance from the bank of mum and dad last year, slightly lower proportion than the 57% of the previous year, but higher than every other year since 2013.

173,500 first time buyers estimated to have received assistance last year, receiving a total of £9.6bn.

Home ownership has significantly reduced from its 2001 peak when 71% of dwellings were owner occupied, to 62% being the latest reported figure.

What policies can be introduced to make homes more affordable and help more FTB onto the ladder who don’t have access to parents gifts or loans.

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By *hrill CollinsMan
2 weeks ago

The Outer Rim

nothing without causing massive problems in other areas

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By *uffelskloofMan
2 weeks ago

Walsall

House prices are set by market demand, that is the number of funded buyers seeking available properties.

Ultimately if we want to lower house prices we can either increase the supply of properties, or decrease the number of people looking to buy them, or both.

Given that the UK isn’t really interested in doing either of these things, I’d expect house prices to keep increasing.

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By *eavenscentitCouple
2 weeks ago

barnstaple

As a Mum who has given lots of help financially and emotionally to both adult children, I'm exhausted by them.

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By *hirleyMan
2 weeks ago

somewhere

Tax the rich. That's it.

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By *ostindreamsMan
2 weeks ago

London

Get rid of stamp duty for FTB and people who are selling and buying another house. Makes it easy for people with larger than necessary houses to downsize and makes it easy for people to buy.

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By *resesse_MelioremCouple
2 weeks ago

Border of London

What policies can be introduced to make homes more affordable and help more FTB onto the ladder who don’t have access to parents gifts or loans.

Why is that a necessary or a good thing? In many (especially European) countries, home ownership is not on the radar of many people. There seems to be a distaste in this country for people trying to work hard and sacrifice to help their progeny. A sense that if everyone cannot have something, nobody should. Then everyone looks to the state to provide everything for everyone.

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By *0shadesOfFilth OP Man
2 weeks ago

nearby

What policies can be introduced to make homes more affordable and help more FTB onto the ladder who don’t have access to parents gifts or loans.

The alternative to a good thing, is that people are stuck living in expensive private rentals, record numbers on social housing waiting lists and record homelessness.

As for the state, it is paying £26bn a year in housing benefit towards these expensive rentals.

In Europe, home ownership levels are higher in 75% of countries, with uk in the bottom quartile. Which is perhaps why it’s not on people’s radar there.

If the consensus is do nothing then state reliance (housing benefit and homelessness) will continue ?

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By *resesse_MelioremCouple
2 weeks ago

Border of London

What policies can be introduced to make homes more affordable and help more FTB onto the ladder who don’t have access to parents gifts or loans.

The alternative to a good thing, is that people are stuck living in expensive private rentals, record numbers on social housing waiting lists and record homelessness.

As for the state, it is paying £26bn a year in housing benefit towards these expensive rentals.

In Europe, home ownership levels are higher in 75% of countries, with uk in the bottom quartile. Which is perhaps why it’s not on people’s radar there.

If the consensus is do nothing then state reliance (housing benefit and homelessness) will continue ? "

Agreed to a point.

The only real solution is to produce a massive amount of new housing, both privately and state owned. Then let the market do its magic.

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By *0shadesOfFilth OP Man
2 weeks ago

nearby

"House prices are set by market demand, that is the number of funded buyers seeking available properties.

Ultimately if we want to lower house prices we can either increase the supply of properties, or decrease the number of people looking to buy them, or both.

Given that the UK isn’t really interested in doing either of these things, I’d expect house prices to keep increasing."

We can’t decrease the number of people needing to buy, or rent from someone that has bought, because all the people that need housing have been borne.

On the supply side, only 10% (12% including gardens) of uk land is developed so there shouldn’t be a problem?

The government via councils is wanting high numbers of affordable units on new developments reducing profit. The London Plan states that 60% of all new housing needs to be affordable, which shows the issues with the current housing market for both sides.

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By *heLeadbettersCouple
2 weeks ago

Reading

The cost of property is driven by two things, the price of land and build costs.

Build costs are rising, both labour and materials.

We've had a decrease in skilled labour for a long time as school leavers want to work in the clean trades, not on building sites.

Too many of the top 10 housing builders are sat on land banks, land they bought years ago and are waiting an eon to maximise their profits.

New idea: major property developers MUST start work building houses on the huge chunks of land they've purchased within 12 months of buying it.

The housing market relies on first time buyers. When rising property prices keep them out of the market, second times buyers can't move on and up. Rinse and repeat upwards for the whole property chain.

When first time buyers can't enter the market, the market grinds to a halt.

"New" idea: incentives for first time buyers.

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By *0shadesOfFilth OP Man
2 weeks ago

nearby

A Dutch lender, has set up a uk subsidiary April mortgages. They are offering 7 times joint income, loan term up to 40 years. Must be on a fixed rate and maximum 85% of the property value. Others will likely follow.

With Mrs Reeves being asked by mortgage lenders to relax affordability limits for loans, is this going to be another mortgage credit crisis in the making.

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By *ulie.your. bottom. slutTV/TS
2 weeks ago

Glasgow

"A Dutch lender, has set up a uk subsidiary April mortgages. They are offering 7 times joint income, loan term up to 40 years. Must be on a fixed rate and maximum 85% of the property value. Others will likely follow.

With Mrs Reeves being asked by mortgage lenders to relax affordability limits for loans, is this going to be another mortgage credit crisis in the making. "

The habit of living in constant debt is a major issue in our society. It's great for the financial institutions, but not for the individual.

We keep hearing how terrible the economy is, but the amount of new expensive cars I keep seeing people driving, I would think it was booming..

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By *aveman 77Man
2 weeks ago

Rotherham

Cap the profit from a house build want be popular few the benefits long term rent comes down house prices come down just those that paid touch would be in negative equity would be effected if planning on building.

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