More help needed for first time buyers

Generations of aspiring homeowners are facing yet another roadblock, as the Bank of England last week announced the biggest interest rate hike seen in 27 years.

Meanwhile, Savills reveals that in the three years to 2024, almost one in two first-time buyers will get financial help from a parent or family member to help them on the property ladder..

Simon Bath, property expert and CEO of iPlace Global, the creators of Moveable, says that the Government must increase support for aspiring first-time homebuyers who don’t have access to the BoMad aka the Bank of Mum and Dad.

Contributions from parents towards purchasing a home amounted to a total of £10.7bn in 2021, more than double the amount in 2019 and at the moment there is little hope of the situation changing.

Simon Bath, CEO of iPlace Global, believes that the Government must introduce more schemes to support Generation Rent:

“The central bank’s recent rate rise will have a significant effect on the property market and for firsttime buyers, the market is hugely daunting at the moment and until supply increases and prices decrease, they would benefit hugely from schemes like the Help to Buy scheme being reintroduced.

“There’s a real absence of support at the moment which is leading to people being reliant on the Bank of Mum and Dad in order to get on the property ladder. “Whilst more than half of firsttime buyers are able to rely on their family members for financial support when purchasing a home, the other half of Generation Rent who don’t have this luxury, could get left even more behind without help from the Government.

“Support is also needed for developers to prepare for March 2023 when the Help to Buy scheme ends.”