The trend of first-time buyers seeking familial support is on the rise.
- A significant surge in joint borrower sole proprietor products by 130% was seen.
- A notable 89% increase in the use of gifted deposits was recorded.
- Principality is responding with enhanced product offerings for brokers.
- The evolving needs of buyers are shaping new market strategies.
In a shifting housing market landscape, research from Principality Building Society highlights the growing trend of first-time buyers leaning on family support to secure their first homes. This insight stems from a detailed analysis conducted in partnership with market research agency Verve, focusing on various stages of the homebuying journey of a diverse group of first-time buyers over several months.
Noteworthy is the substantial 130% increase in the uptake of joint borrower sole proprietor (JBSP) products from 2022 to 2023. This indicates that more buyers are partnering with family members financially, allowing them to step onto the property ladder. Furthermore, there has been an 89% rise in buyers utilising gifted deposits within the same timeframe, underscoring a considerable trend towards family-assisted home purchases.
In light of these findings, Principality Intermediaries has proactively enhanced its product range. The introduction of a suite of family boost options is specifically intended to aid brokers and their clients who are navigating the challenging waters of first-time home ownership. Helen Lewis, national intermediary manager at Principality Building Society, remarked that their research has revealed diverse needs among first-time buyers. She noted, “One of the key callouts was the need for family support, with around a third of first-time buyers that have applied in recent months, showing a reliance on gifted deposits.”
This evolution in buyer needs compels financial institutions to reassess and adapt their offerings. Principality’s strategic response aims to spotlight the support available, facilitating brokers in effectively working with clients entering the property market for the first time.
The market adapts as family support becomes crucial for first-time buyers.
