FTBs aren’t as reliant on Bank of Mum and Dad
Recent figures suggest that first-time buyers (FTBs) are no longer as reliant on financial gifts from family members, usually parents, commonly known as the Bank of Mum and Dad (BoMaD).
Data from the English Housing Survey, shows that the proportion of FTBs who had financial help from their family and friends in the 201-20 financial year was down from 34% (the previous year’s total) to 28%. This decreasing trend has been happening over a period of years, when the previous high was 39%.
According to analysts working on the report, they see the decreasing trend as something that was being impacted prior to the coronavirus pandemic. However, the financial worries and problems brought out as a result of the pandemic will no doubt have an impact on future gifts being thought of by parents.
They have alluded to parents feeling poorer and aren’t as forthcoming giving financial gifts to their adult children to help them get onto the property ladder.
Jonathan Harris, from Forensic Property Finance, said:
“With so much uncertainty, nobody wants to be handing over savings that they may well need themselves in the not-too-distant future.”