One in twenty homebuyers find deposits underneath the tree

One in twenty homebuyers find deposits underneath the tree

Just over 5% of homebuyers relied on a gifted deposit this year, up from 4.71% in 2014.

First time buyers are regularly turning to the bank of Mum and Dad, according to research by My Home Move.

The research also revealed that nearly half (47%) of buyers using government measures designed to help first time buyers are also still relying on gifted deposits.

The number of buyers using gifted deposits peaked in December 2014 (5.6%) and January 2015 (5.9%) suggesting that cash for a house deposit is gaining popularity as a present

My Home Move’s Doug Crawford said: “Struggling first time buyers might be wishing that their parents come to the rescue of their homeownership dream this Christmas by helping with a cash deposit. Rising house prices and steep monthly rental bills that hinder young people’s ability to save mean that help from mum and dad has become increasingly important in recent years.

“Last year saw a seasonal spike in gifted deposits either side of Christmas and it will be interesting to see if the pattern repeats itself.

“Despite schemes like Help to Buy, many young people struggle to get enough money together for a deposit – and it’s only natural that parents who have the means are stepping in to help them get the money together.

“The fact that one in twenty home purchases now involves a gifted deposit shows the lengths that parents are willing to go to secure their children a foot on the ladder.

“First time buyers lucky enough to get a Christmas gift of money towards a home purchase need to know that when they have an offer accepted, their parents will have to go through some legal formalities to prove the money was theirs to give.

“Sorting out the paperwork early on can prevent delays later on when sellers might be impatient about a slowdown in the purchase.”

Josh Morris

Josh is the Journalist for the Today's Group and writes many of the articles for Today's Conveyancer. He graduated with a degree in Physics from Cardiff University in 2009 before training as a journalist.
He has previously written for The Times, The Mirror and The Daily Express.

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