Is the best way for parents to help their children onto the housing ladder not to help at all? Lynda Clark of First Time Buyer magazine explores the options for first-time buyers and their parents.
Getting on the housing ladder has never been an easy task. Even when I bought my first home some years ago it took years of saving to get enough for a deposit. However, on balance, I do think that hopeful young home buyers today probably have the biggest mountain to climb.
With our own impending pension pots looking a little less fruitful, and many of our generation now expecting to work into our 70’s, it does seem a little daunting that we as parents are also relied upon to give the generation behind us a financial boost onto the housing ladder.
The reality is that home buying today is a completely different place to when we were seeking out our first homes. Back then house prices weren’t as high, mortgages were easier to secure and lower deposit requirements ensured a more affordable monthly repayment.
Tips for first-time buyers
As a devoted mother to three adult sons (two of whom have made it onto the housing ladder) and as editor of First Time Buyer Magazine, I feel it my duty to share some ways that you may not have considered to help your children buy their first home.
While the market may be a tougher one and involve much more financial scrutiny, as well as dealing with house prices increasing at a faster rate than incomes, today there are actually many new innovative ways available that will reduce the upfront cost of buying a property.
- One you may have heard about is Help to Buy, which is one of the most cost efficient ways to buy a new home with less upfront cost. Basically it means the government provides a loan, so you won’t have to.
- Alongside this is the forthcoming Help to Buy Isa, a savings account for first-time buyers that could see up to £3,000 put in by the government.
- Shared ownership is a great way to buy a portion of a property, without having to stump up the entire cost straight away.
Children moving back home
Of course, allowing your child to move back home is a more cost effective way to allow them to save for an all-important deposit. I did this myself and while I very much enjoyed this extra time with my grown up boys, it was also very nice to see them eventually find their own place – encouraging them to take responsibility for their own upkeep as well as giving my washing machine a well-deserved rest.
So there are many ways to help your children onto the housing ladder, without necessarily breaking your own bank. There’s a huge pressure on parents to support their grown up children onto the housing ladder, but a bit of guidance, support and perhaps even a little more time under your feet may be all that it takes.
Have you ever had to help your child onto the property ladder? Or are you a first-time buyer looking for help from your parents?
This is a guest contribution by Lynda Clark, editor of the First Time Buyer magazine, which is running the First Time Buyer Home Show on 10 October 2015. All opinions are Lynda’s own, not necessarily those of Which?