Call us today on 0141 552 9193
GLP News

News, Comment & Opinions on the latest legal stories

Glasgow Law Practice White

Practice made perfect

First Time Buyers & Parents Disagree Over Difficulties Buying a Property

A report by Halifax has shown that parents and first-time buyers disagree about how possible it is to buy a property. The study from the banking group showed the different perspectives and concerns that many first-time buyers have when it comes to buying a home.

The different opinions regarding a property are highlighted by the fact that 12% of parents believe it is difficult to obtain a mortgage, with 21% of first-time buyers believing that this is one of the most difficult aspects of buying a property.

The data collated from the Halifax survey collects information from more than 40,000 first time buyers between 25-40 years-old and 4,000 parents between the same age.

Interestingly, the most recent survey goes against the usual trend in the last three years having parents believing it is more difficult to get a mortgage than first-time buyers. Despite this, the number of first-time buyers who believe it is almost impossible to get a mortgage have fallen by 8%.

Issues when Buying a Property

The survey also found that more parents than ever believe that their children will need their help when first buying a property. According to the study 57% of parents who own property either contributed. or plan to contribute, towards their child’s deposit. This is in stark contrast to the 27% of those who rent.

The latest figures from the Office for National Statistics show that almost 25% of young people between the ages of 20 to 34 in Scotland currently live with their parents. The vast majority of those youngsters living with their parents or in their family home stated that difficulties in the job market and rising property prices meant that it was impossible for them to live independently

Craig McKinlay, Mortgage Director of the company who conducted the report Halifax, said: “The Generation Rent report shows a clear divide between parents and their children as regards optimism over getting on the housing ladder. In reality, there are more mortgages available which require a 5% deposit and first-time buyer numbers are increasing.

“Whether it is giving their children a cash lump sum or providing a roof over their heads while they save, it is clear the bank of mum and dad will have a role to play in helping their children get on the property ladder for the foreseeable future.”

Last year, the Scottish Government invested more than £130 million in a help to buy scheme in a bid to aid first-time buyers get on the property ladder.

Contact Us

If you require legal advice regarding buying a property our team of Glasgow-based solicitors can give you the advice and representation required, Whether you are looking to buy a property for the first time or sell a property, contact our team today to find out how we can help.