Parents Put Back Retirement Plans To Help Their Children Onto The Property Ladder
June 01, 2006 (PRLEAP.COM) Business NewsMost parents expect to provide financial assistance in order to help their children onto the property ladder, but believe that doing so will impair their retirement plans, according to research by first time buyer advice website, www.FirstRungNow.com. To accompany the publication of the research, FirstRungNow has teamed up with the Bradford & Bingley to offer a £5000 cash boost for a first time buyer to put towards their house purchase.
The research revealed that 71% of parents believe it has become necessary to provide financial assistance to their children so they can get on the property ladder, but almost the same amount (65%) believe that doing so will effect their retirement plans. Parents also want the government to focus on increasing stamp duty thresholds and encouraging young people to save as the most effective measures to help people move towards home ownership.
The majority of parents don't expect their children to become financially independent until after the age of 23, and do not expect their children to pay back any money provided to buy their first home. They also voiced a series of concerns about offering money to help fund a house purchase, particularly relating to lack of independence.
Duncan Pownall, Mortgage Development Manager at Bradford and Bingley comments: "It is not just the first time buyer that needs to seek mortgage advice. Although it can be easier for a purchaser with a deposit gifted by their parents, there maybe more suitable alternatives which do not necessarily need the input of the parent. However, if it proves that parental assistance is required then parents should also be seeking advice. There are a number of ways in which familys can help and it doesn't necessarily mean having to put off retirement or cutting back on luxuries."
FirstRungNow is a source of impartial advice and assistance for first time buyers and has designed the competition draw to provide funds to be put towards the purchase of a first home. The competition will run from May 22nd to July 31st, exclusively on www.FirstRungNow.com, where any aspiring first time buyer using the site to complete an enquiry to Bradford & Bingley will be entered into a draw to win £5000 in cash to put towards their first home. The winner will be drawn on July 31st and a cheque presented at their local Bradford & Bingley branch on August 11th. (Rules apply)
“The current generation of first time buyers not only have high property prices to deal with - there are also large numbers of young people leaving University with significant levels of debt,” commented Helen Adams, Managing Director of FirstRungNow. “The result is that young people feel they just can't afford to buy a house, when the reality is there are a range of options open to them. This competition will provide someone out there with a great boost as they look to buy their own home.”
FirstRungNow.com has been set up for the express purpose of helping first-time buyers find their way to buy a first home. The service provides first-time buyers with all the information they need to find out how to take their first step onto the property ladder. The comprehensive information the site offers helps set out the options open to first time buyers, ranging from joint or shared ownership schemes to parental assistance.
For more information, visit www.FirstRungNow.com.
The research was independently commissioned by FirstRungNow Ltd, amongst a sample of 1000 50+ year olds, who are finance decision makers in the family.