As exam season hits, Richard Stovold, from Seymours Estate Agents in Guildford, comments on the graduate market and the ongoing need for the bank of mum and dad
With debts in excess of £30,000 when they leave university, it’s no surprise that today’s graduates need to rely on the ‘bank of mum and dad’ to help them buy a home.
According to new research from Legal & General, parents continue to be a major source of funding to help their children get onto the property ladder with the number of property transactions across the UK funded by parents expected to rise by three per cent this year.
In fact, the research suggests that 27 per cent of buyers will get help from friends or family to purchase a home, accounting for 316,600 property transactions – that’s two per cent up on last year. Parents are, however, providing smaller sums than previously with the average contribution expected to decline by £3,600 in 2018 compared with last year.
Graduates choosing to buy a home here in Surrey may need more help than most with average house prices coming in at just shy of £600,000. However, those who are able to take their first step on the ladder will be well worth doing so in Guildford.
The town, home to the University of Surrey, topped a recent list by Halifax of the best university towns to buy a home with the biggest house price growth over the past three years - £105,362, equating to 26 per cent.
Of course, that’s also good news for any parents who decide to buy a home in the town for their children to live in while studying there.
Another good piece of news for young professionals wanting to get on the property ladder is that, in contrast to previous years when mortgage lending has been strict, data from UK Finance showed a 13 per cent increase in lending in April.
Still, if lending restrictions return, the research suggests mum and dad will still be on hand to help.