New Guide Provides New Hope For First Time Buyers
By admin
Issued on behalf of Griffiths Ings Solicitors
WITH house prices running away at almost five times average salaries and property values trebling in the last 10 years, it’s no surprise that the average age of first time buyers today stands at 32.
From every corner of the housing market the message to many of those trying to secure a first foothold on the property ladder seems to be the same – you haven’t got a chance.
Recent statistics from the Halifax, which revealed the number of first time buyers has collapsed to its lowest level for almost 30 years – down 43 per cent in five years – has only reinforced that picture of doom and gloom.
But a new and unique guide for first time buyers launched by South Wales residential property lawyers Griffiths Ings provides real hope for the thousands of would-be first timers told they are not earning enough and who are now resigned to renting.
Griffiths Ings believe the answer to the plight of a growing number of failed first time buyers lies with a little bit of help…from their nearest and dearest.
Julian Ings, a partner in Vale of Glamorgan-based Griffiths Ings, says parents are the key to unlocking the door to a first home for the next generation of property owners, who are sick and tired of being told they won’t even make it onto the first rung of the ladder.
“There are very few first time buyers today with sufficient income and savings of their own to buy a property without some help from family,” said Julian. “In fact, 42 per cent of first time buyers get some form of help from their parents, more often than not with the deposit.
“Even for graduates, who expect to earn higher salaries in the workplace, the burden of student debt has meant it can be many years before they are in a position to buy their own property.
“However, the dramatic rise in house prices in recent years has also had the effect of making many existing homeowners comparatively wealthy, particularly if they have owned their home for several years and have still got the equity in it.”
Griffiths Ings say these property-rich parents can, in many cases, provide the security sought by mortgage lenders wary of potential young buyers over-committing themselves.
Julian added: “A growing number of lenders are waking up to the fact that property-owning parents could be the answer to solving the current problems faced by some first time buyers and are producing more creative mortgage products to allow first timers to benefit from the equity in their parents’ home.
“Many lenders are now looking to take into account the income of the parents as well as that of their son or daughter in calculating how much they will lend. In many cases, parents can help – without it even costing them a penny.”
The Griffiths Ings First Time Buying With Your Parents guide was launched this month for distribution via estate agencies, house builders and new-build housing developments across the region. It includes a Q & A section and a series of four case studies to show just how parents can really make the difference between success and failure in buying a first home.
Julian said: “There is a lot of unnecessary gloom, doom and despondency in the market place for first time buyers at the moment. The message we are aiming to get across is there are a number of ways in which young people can certainly achieve their dream of securing that foothold on the property ladder with the help of those closest to them.
“We believe there is a massive knowledge gap between the estate agents and the sales staff on the new build starter homes sites, a lack of understanding of the innovative mortgage products that are now becoming more widely available for first timers.
“There are currently an enormous number of would-be first time buyers making enquiries about buying property, only to be turned away and told they can’t afford it. These people are simply walking away and joining the rental market.
“We are saying that in many cases they certainly can become property owners – by harnessing their parents’ property wealth and income to give them that head start.
“After all, it’s the most natural thing in the world for parents to support their children. They do it from the day they are born to the day they leave home to start a life of their own. Helping them to gain a foothold on the property ladder is just an extension of that support and in many cases can be done at no cost to themselves.”
You can pick up a free copy of the Griffiths Ings First Time Buying With Your Parents guide from Griffiths Ings, 70 High Street, Barry; phone 01446 725184; or download the guide from www.griffithsings.com
