Families dig deep to help
Gave us cash to buy our first flat
money@mirror.co.uk THE property market is becoming a generation game as a third of buyers aged 18 to 34 were given a helping hand on to the ladder from grandparents, exclusive data for Mirror Money reveals.
That’s compared to just 3% of over55s, who got cash towards a house purchase from their grandparents.
Meanwhile, one in four prospective property buyers expect to get a cash boost from the older generation.
The rapid growth of house price-toincome ratio means this help from older generations is vital to enable younger generations to get the keys to a first home.
A study by online mortgage broker Trussle has found that in 1991 the average house price stood at £80,443 – that was 4.5 times the average £17,803 salary. Today’s average house price is £234,853 – a hefty 7.9 times the average £29,558 salary.
According to the research, homeowners are typically 25 years old when they receive financial support from grandp¥arents. The amount of cash being given to grandchildren is £7,400, equalling 30% of a typical 10% deposit at £23,485.
Dilpreet Bhagrath, mortgage expert at Trussle, said: “Saving for a house deposit can be extremely difficult given that the average house price is now nearly eight times income. This can be even harder for those who are renting at the same time – so financial support from family members is often essential to get on the property ladder.
“The research underlines the generosity being shown by grandparents as they help the younger generation.” New mum Juvayriyah Ikram had no idea how vital the £10,000 her grandad gave her would be to getting a foot on to the property ladder. The teacher, 24, from East London, says: “Grandad gave me the money in 2016 on condition I had to use it towards a deposit for a home. I didn’t realise how important this money would be when he first gave it to me as I didn’t reap any immediate reward. But once it was put into perspective I realised I wouldn’t have for been able to get the cash together a deposit without it.”
While studying at university Juvayriyah put the lump sum into a savings account, then set up a standing order into a Help to Buy ISA, so she could get the benefit of the government bonus on her savings. She saved £8,000 and got a £2,000 bonus and still had £2,000 from her grandad. Once she started work she managed to save another £5,000.
She and partner Connor, 24, needed to save a £30,000 deposit between them to buy their two-bedroom flat and to keep the mortgage repayments at around £1,000 a month. Juvayrivah adds: “We were both living with our parents and they also helped us out by not charging any rent, so we could save as much as possible. We knew we wanted to buy as renting is so expensive and we didn’t want to be throwing money away. We moved into our flat in September and now have a fiveweek-old our girl. It’s so lovely to have first home – and one that is big enough for the three of us.
“As soon as I found out I was pregnant I started saving a bit extra every month, to ensure we had enough to see me through maternity leave. I will go back to secondary school teaching next autumn.
“We are both so grateful to grandad and to our parents for all of their support and financial help – without that it would have been years before we got the keys to our first home.”