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More people using own money to buy first home

It seems grown up children are not relying on the “bank of mum and dad”.

 

According to analysis from mortgage lenders, fewer first-time buyers are resorting to their parents for help in buying houses.

The Council of Mortgage Lenders (CML) has estimated that 48 per cent of people taking their first step on to the property ladder last year did so without needing extra cash from parents and grandparents.

It is a significant increase compared with the 34 per cent of first-time buyers who were thought to have got into the market in 2011 without needing added help in raising their deposit.

Figures from the CML show more than 300,000 home loans were handed out to first-time buyers during 2014 – the largest number seen since 2007.

80 per cent of scheme completions under the equity loan and mortgage guarantee schemes have been made by first-time buyers.

Housing Minister Brandon Lewis said: “Today’s figures from the Council of Mortgage Lenders show how our long-term economic plan is working.

By offering help to hard-working aspiring homeowners who don’t always have access to the bank of mum and dad.

Since the launch of Help to Buy, over 88,000 households have been able to buy with a fraction of the deposit they would normally require – with over sixty six thousand households having bought their first home thanks to the scheme.”

The figures come as the housing and homelessness charity Shelter says first-time buyers would be paying £77,000 less to get on the property ladder if house price inflation had kept pace with wage increases in recent decades.

Across England, the price of a starter home has increased by around 48 times since 1969, from £4,136 to £198,039 typically.

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