Member Article

Not just the bank of Mum and Dad anymore

New research reveals parents influence almost a third of first-time buyer house purchases in the North East

• 1 in 5 first-time homes are chosen by parents, while 57% buy in areas parents suggest
• 20% of first-time buyers had to move back in with their parents to save their deposit
• First-time buyers who moved back in with parents saved on average £4,000

Research from homebuilder Barratt Developments North East, which has the North Gosforth development in Gosforth has revealed that parents have an influence on 29% of all properties bought by first-time buyers, which increases to almost half (40%) when the buyers have had financial help from parents towards their deposit. North Gosforth Park has been popular with those looking to get their foot on the property ladder, with 67% of all purchases being first-time buyers.

The survey, of 1,001 first-time buyers over the past five years, highlighted the increasingly influential role of parents in the homebuying process, particularly when they play an active part in helping save for a deposit.

Results revealed that 57% of first-time buyers who had help from their parents towards a deposit, whether as a financial gift or through moving back home to save, believe their parents influenced the choice of their first home and the location in which they bought.

When offering help over a quarter (28%) of parents actually vetoed properties their children considered buying. They vetoed two properties on average, with 33% of parents concerned about location.

Fenton Hewitt, Sales Director at Barratt Developments North East said, “The role of mum and dad in helping children get on to the housing ladder is well known, but we wanted to drill a bit deeper into how that may influence the end choice of home their children buy. It’s interesting to look at the extent to which parents do influence their children’s choice in home, and how that influence is greater when their children move back home to save or particularly when they themselves contribute financially to the purchase.”

31% of first-time buyers moved back in with their parents to save for a deposit, which allows buyers to save an average of £5,000, while 8% saved more than £10,000.

67% of buyers at North Gosforth were first-time buyers, highlighting the popularity of this development. Recently launching two new show homes, North Gosforth Park features a range of one, three and four bedroom homes priced from £139,995 and is a popular location for families and first-time buyers alike.

For more information on the survey and its findings, please visit: https://www.dwh.co.uk/advice-and-inspiration/interactive/one-five-first-homes-chosen-buyers-parents.

This was posted in Bdaily's Members' News section by Richard Savage .