Recent data from the Rightmove House Price Index May 2022 showed that the average asking price for a first-time buyer home (two bedrooms or fewer) has reached a new record of £223,117.
This means a solo first-time buyer on the national average full-time salary would need to borrow 4.5 times their income and have a 34% deposit of £74,402. With first-time buyers needing to save a deposit that is 112% higher than a decade ago, it’s no wonder that more and more are turning to the Bank of Mum and Dad for financial support.
Indeed, research from Legal & General showed that more than 56% of first-time buyers aged under 35 received a financial gift, known as a Gifted Deposit, to help them step onto the property ladder in 2020. Property lawyer, Alistair Millar from Tallents Solicitors looks at the legal implications to be aware of for all parties involved.