House prices are continuing to soar in the UK, recently growing at their fastest rate for 17 years as of March 2022.
During this four-week period, prices boomed nationwide, with the average property price up by £33,000 year-on-year.
While this is great news for homeowners, it is far from ideal for those looking to take their first steps on the property ladder. So, here are some steps you can take to help your child buy their first home in the current climate.
Getting Started with the Necessary Financial Support
Let’s start with the basics; the most important support you can offer your children is financial in nature.
Unsurprisingly, the so-called ‘bank of mum and dad’ remains central to the plans of first-time buyers in the UK with parents having aided 49% of all inaugural house purchases through 2021.
In fact, total contributions from parents to younger generations of home buyers reached around £9.8 billion last year, mostly in the form of loans and the use of savings to fund viable deposits.
Older parents in particular are inclined to offer gifted deposits from their estate in an effort to avoid inheritance tax (IHT) which does not apply if the money is shared at least seven years before their death. You can get expert advice on estate planning to help you organise a gifted deposit on behalf of your child.
Another form of welcome practical support can be found in making recommendations as you look to share your first-hand experience of purchasing a property.
For example, you could recommend a reliable local conveyancing solicitor to help manage the purchase of a property or identify reputable mortgage lenders and advise on which are offering the best mortgage deals for new homeowners. A list of good-value and dependable plumbers, electricians and decorators, or information on how to go about the process of hiring a garage door repair company will also prove useful to further down the home-buying process when your child is seeking to carry out the checks and improvements recommended by their surveyor.
You can also share your first-hand advice to your children with regards to what to look for when viewing a property, no matter whether they are looking for Ocean One Villas for sale or cosy cabins in the Scottish countryside, which can cover anything from ensuring there is plenty of storage space to check for warning signs such as dampness.”
Provide Emotional Support
Last but definitely not least, you will need to share the emotional burden of buying a first home, as the unforeseen challenges and painstaking delays can be incredibly worrying if you’re new to the property market.
By being present and giving emotional support to your children throughout, you will reduce their stress and make the process of being a first-time homeowner far easier and more manageable.
Providing practical and financial support is of utmost importance, but the best way to help your child buy their first home is simply by lending a friendly ear and providing reassurance for any difficulties that they may be facing.