Research shows first-time buyers increasingly rely on family support.
- From 2022 to 2023, use of joint borrower sole proprietor products rose by 130%.
- There was an 89% increase in gifted deposits among first-time buyers in the same period.
- Principality Building Society has introduced family boost options in response.
- The new options aim to better support brokers assisting first-time buyers.
Principality Building Society has uncovered a growing trend among first-time homebuyers who are turning to their families for financial assistance. This insight emerged from their collaboration with Verve, a market research agency, which surveyed a varied group of first-time buyers over several months. The findings were quite telling.
The use of joint borrower sole proprietor (JBSP) products has seen a dramatic increase of 130% between 2022 and 2023. This figure underscores the growing reliance of first-time buyers on having a family member support their mortgage applications. This arrangement allows relatives to assist financially without being registered co-owners of the property.
In addition to JBSP products, there has been a notable increase of 89% in the use of gifted deposits. This statistic highlights a significant shift towards family-assisted home purchases. These developments suggest that familial financial support is becoming an integral component of the first-time buyer journey.
Recognising these trends, Principality Intermediaries has expanded its product range to include a suite of family boost options. The initiative aims to assist brokers working with clients who are embarking on the housing ladder for the first time. These new products are designed to meet the diverse needs of first-time buyers who rely on family support.
Helen Lewis, National Intermediary Manager at Principality Building Society, stated that the society’s research highlights the varied needs of first-time buyers. Lewis remarked, ‘One of the key callouts was the need for family support, with around a third of first-time buyers who have applied in recent months showing a reliance on gifted deposits.’ This statement reflects the organisation’s commitment to adapting its offerings to better support potential homeowners and their brokers.
Principality’s new family boost options reflect the increasing trend of relying on family assistance among first-time homebuyers.
