27th
Jul 2016
There now seems to be a change from parents helping their children to buy their first homes to people using their parents’ money to purchase buy-to-let properties.
Many new buyers are opting to purchase buy-to-let properties in areas that are more affordable to get onto the property ladder.
More than £5 billion every year is given by grandparents and parents to help their children buy properties which are being snapped up in the East and West Midlands, house prices are more affordable and one can expect to achieve rental yields of 5-6%.
A report was conducted by a company that provides mover conveyancing services, claims that gifted deposits in the East and West Midlands have risen by 6 % and 12% per cent.
CEO of the company, Doug Crawford, said: “When we talk about the Bank of Mum and Dad, people usually think of first-time buyers who are struggling to afford their first home.
“It is interesting that these investors, those who have had the deposit gifted, have made the decision to buy in areas outside of the Capital – suggesting that they either wanted to make their money go further by buying in less expensive locations, or there just wasn’t the stock available to buy in London.”
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