Recent research highlights the growing reliance on family support by first-time homebuyers.
- A notable surge of 130% in joint borrower sole proprietor products has been observed.
- There is an 89% increase in the use of gifted deposits among first-time buyers.
- Principality introduces family boost options to aid first-time buyers through brokers.
- Helen Lewis emphasises the diverse needs of first-time buyers identified in the research.
In a significant development, recent research has revealed that first-time buyers are increasingly leaning on family support to secure their first homes. This shift underscores a growing trend where family involvement is becoming pivotal in facilitating home ownership for newcomers to the market.
One of the standout findings from the research is the remarkable 130% increase in the adoption of joint borrower sole proprietor products from 2022 to 2023. This suggests a strong move towards joint financial agreements that allow parents or family members to support first-time buyers without becoming co-owners of the property.
Additionally, there has been an 89% uptick in first-time buyers utilising gifted deposits over the same period. This significant rise highlights the critical role family contributions are playing, effectively helping many overcome the financial barriers to entering the housing market.
In response to these trends, Principality Intermediaries has expanded its product offerings to include a suite of family boost options. These new offerings are designed to assist brokers in providing more tailored solutions to clients embarking on their home-buying journey.
Helen Lewis, the national intermediary manager at Principality Building Society, has articulated the varied needs of first-time buyers identified through their research. She noted that family support was a prominent requirement, with around a third of recent applicants for first-time buyer mortgages depending on gifted deposits. Lewis reiterated the importance of updating their product range to align with these identified needs, providing brokers with a comprehensive set of tools to assist their clients effectively.
The research and subsequent product enhancements by Principality highlight the essential role of family support in the evolving journey of first-time buyers.
