This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.theguardian.com/money/2014/may/05/parents-help-children-buy-homes-despite-concerns-finances
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| British parents help children buy homes despite financial concerns finances: study | |
| (about 9 hours later) | |
| More than a third of parents who have helped their children on to the property ladder are concerned they have harmed their own financial future as a result, according to a report today. | More than a third of parents who have helped their children on to the property ladder are concerned they have harmed their own financial future as a result, according to a report today. |
| The poll from mortgage lender Halifax says two-thirds of 20- to 45-year-olds who have been able to buy a home received help from their parents and is likely to intensify concerns that a runaway housing market is pricing out many first-time buyers. | The poll from mortgage lender Halifax says two-thirds of 20- to 45-year-olds who have been able to buy a home received help from their parents and is likely to intensify concerns that a runaway housing market is pricing out many first-time buyers. |
| Its survey, which analysed 3,000 views from parents over three years, showed 38% were concerned about their own financial future after helping their children with the cost of getting a home, with many dipping into savings. | Its survey, which analysed 3,000 views from parents over three years, showed 38% were concerned about their own financial future after helping their children with the cost of getting a home, with many dipping into savings. |
| Echoing official statistics showing a record number of young adults are living with their parents, the Halifax survey reported a quarter of parents saying their children had moved back in with them because they were not able to buy their own property. More than 90% of parents thought it was hard or impossible for first time buyers to obtain a mortgage. | Echoing official statistics showing a record number of young adults are living with their parents, the Halifax survey reported a quarter of parents saying their children had moved back in with them because they were not able to buy their own property. More than 90% of parents thought it was hard or impossible for first time buyers to obtain a mortgage. |
| "For many buyers, parental support is now the fundamental first step on to the property ladder," said Craig McKinlay, mortgages director at Halifax. | "For many buyers, parental support is now the fundamental first step on to the property ladder," said Craig McKinlay, mortgages director at Halifax. |
| "For parents whose children are looking to buy, and those first time buyers now wanting to own, real consideration needs to be given to set realistic timescales and ways in which this can be achieved without either party being overstretched or facing longer term financial difficulty." | "For parents whose children are looking to buy, and those first time buyers now wanting to own, real consideration needs to be given to set realistic timescales and ways in which this can be achieved without either party being overstretched or facing longer term financial difficulty." |
| The poll also suggested most parents saw their help for children as a one-way street. After helping their offspring get a leg up on to the property ladder, 92% of parents would not anticipate their children to help them out financially in return. | The poll also suggested most parents saw their help for children as a one-way street. After helping their offspring get a leg up on to the property ladder, 92% of parents would not anticipate their children to help them out financially in return. |
| The report follows the strongest warning yet from the Bank of England over the dangers of the return of rapidly rising property prices. A senior Bank official last week said Britain's booming housing market could be heading for a fresh crash. | The report follows the strongest warning yet from the Bank of England over the dangers of the return of rapidly rising property prices. A senior Bank official last week said Britain's booming housing market could be heading for a fresh crash. |
| Sir Jon Cunliffe, the Bank's deputy governor for financial stability, cautioned it would be dangerous to ignore the momentum apparent across the country and dropped strong hints of new measures to slow down the market in the months ahead. | Sir Jon Cunliffe, the Bank's deputy governor for financial stability, cautioned it would be dangerous to ignore the momentum apparent across the country and dropped strong hints of new measures to slow down the market in the months ahead. |
| Figures from the Nationwide building society last week showed annual house price inflation at a seven-year high of 10.9%, as low mortgage rates and a mismatch between supply and demand for homes continued to drive the market. | Figures from the Nationwide building society last week showed annual house price inflation at a seven-year high of 10.9%, as low mortgage rates and a mismatch between supply and demand for homes continued to drive the market. |
| Despite its worries about the housing market and confirmation in official data that economic growth is accelerating, the Bank is widely expected to keep interest rates at their record low of 0.5% when policymakers meet this week. Some economists are now saying the first move higher for borrowing costs could come around the turn of the year, but most expect the first hike to be several months into 2015. | Despite its worries about the housing market and confirmation in official data that economic growth is accelerating, the Bank is widely expected to keep interest rates at their record low of 0.5% when policymakers meet this week. Some economists are now saying the first move higher for borrowing costs could come around the turn of the year, but most expect the first hike to be several months into 2015. |