First-time buyers expect parental pay-out

Many first-time buyers expect financial help from their parents to get onto the property ladder, according to new research.

Research out today from Abbey shows 23 per cent of first-time buyers expect their parents to give or loan them money for a deposit, 12 per cent expect parents to act as a guarantor on their mortgage and 13 per cent expect their parents to pay for furniture or household appliances.

Around two thirds of first-time buyers expect their parents to use their savings to help their children, and eight per cent think their parents will re-mortgage for their benefit.

Jeff Scott, Abbey's head of mortgages, said: "Many first-time buyers need a significant leg-up from parents to have a realistic chance of getting on the property ladder.

"It is commonplace for parents to take their children back into the family home so that they can save for a deposit, as well as helping them out with cash gifts or loans.

"Even when their offspring have found a place to buy, parents are still expected to help out on moving day, and with DIY and decorating."

However, not all first-time buyers take parental finances for granted - almost a quarter will be required to carry out odd jobs when their parents retire, and 18 per cent will have to pay back any family loans.

A more serious commitment was made by 11 per cent of first-time buyers, who will allow their parents to move in with them when they retire. Six per cent go one step further and will even pay their retired parents a monthly income.

As well as first-time buyers expecting parental help, many are taking drastic action if they cannot get the funds together, with one abandoning their plans to buy and 17 per cent choosing to buy an investment property instead. XXX