Monday, January 15, 2007
Category:
Property
The Department for Communities and Local Government recently stated that parents could be increasingly under pressure to help their children onto the property ladder.
Government figures referred to showed that fourteen thousand people a year are releasing equity from their homes in order to help them buy another property, either for themselves or for family members – withdrawing an average sum of £74,000.
The under 30’s buying their own home with a mortgage has also dropped with 34% purchasing in 2006 compared to 40% in 2001. To tackle long-term affordability problems, the Government said that more new homes need to be built. Though levels of house building have increased to more than 165,000 compared to 130,000 in 2001, this would need to reach 200,000 a year to respond to rising demand and affordability pressures.
Housing and Planning Minister Yvette Cooper said, ‘Many people are still opposing the increased housing we need so badly. Yet it won’t just be young people who lose out if we don’t build the new homes the next generation needs. These figures show their mums and dads will feel the heat too.
It’s also unfair on people who can’t get family help to get them started. People’s chances of home ownership should not depend on whether or not their parents or grandparents were home owners before them.
That’s why we need to support more homes, and more shared ownership schemes, to give people a first step on the ladder.’
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Parents wanting to help their children onto the property ladder could consider a
secured homeowner loan. One of many options, a secured loan could raise funds needed for a deposit or to help with furnishings that many first time buyers are without. As well as helping their kids on their way, parent homeowners could also consider using a secured loan to make some improvements to their own property once offspring have moved out. Secured loans can usually be repaid over a term of 5 to 25 years.
