Mum (and dad’s) the word for hard-pressed first time buyers - 23rd March 2017

The number of first-time buyers relying on the “bank of mum and dad” has reached a record high, according to a new survey.

Research for the Social Mobility Commission suggests that more than a third of homebuyers in England depend on money from their family.

Using 2013-14 data, researchers found 34 per cent of buyers needed a loan or cash from their parents – a hike of 20 per cent in 2010/11 – and a further 10 per cent relied on inherited wealth.

This issue has already been highlighted by insurance company Legal and General, which said that a quarter of all mortgages in the UK in 2016 were part-funded by parents with £17,500 the average amount given.

According to the Land Registry, the average cost of a home bought by a first-time buyer in England and Wales is now just under £200,000.

Alan Milburn, chairman of the Social Mobility Commission, said: “Home ownership helps unlock high levels of social mobility, but it is in free-fall among young families. The way the housing market is operating is exacerbating inequality and impeding social mobility.”

SW&A welcomes any initiative to help first time buyers get a foot on the housing ladder and will be keeping a keen eye on the new Starter Homes programme, whereby buyers aged between 23 and 40 will be able to buy homes at a 20 per cent discount to the market value.

Covering 30 areas of England - Worcesterhire isn’t included at present - the programme will apply to homes up to £250,000 in value, or £450,000 in London.

The Government also wants councils to encourage smaller developers to build houses and to allow more vertical building in urban areas. In the words of 1980s popstress Yazz, maybe the only way IS up!

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SW&A Accountants launches it's new website in March 2013 - it's been a long time in the making and has had a lot of input from the owners Neil and Andrew - Andrew says " the website was designed to showcase our services in a lively and informative manner " ...

Our company intends to ensure that our new website become not only a hub of activity but also somewhere as a useful source of information for our current and prospective clients. Neil stated '"it is my intention to use the website as a tool to communicate with out clients; this is something we will grow over the coming years to incorporate our informative blogs, news and social media work."

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