Is Bank of Mum and Dad about to go bust?
The reliance of a new generation of househunters and renters on their parents means the Bank of Mum and Dad is being put under increasing financial strain, according to a new survey from the National Housing Federation.
A total of 1,176 British adults with children aged between 21 and 40 were interviewed for the study – 511 had adult children living away from home who they help financially. The results show that there are now nearly as many parents paying some of their adult children’s rent as there are helping them to buy a home. The survey found that:
* 13% of parents help with rent
* 9% of parents help with money towards a deposit to rent a property
* 16% of parents help with money towards a deposit to buy a property
* 7% of parents help money towards mortgage repayments
National Housing Federation Chief Executive David Orr said: “The housing crisis is having a domino effect through family generations because young people in decent jobs are relying on their parents just to rent a home, never mind save for a mortgage deposit. This is putting pressure on parents who are picking up the tab because for decades we haven’t built enough homes. We need to start building quality homes for the right prices in the right places, otherwise rents will continue rising, young people will continue struggling and the Bank of Mum and Dad will eventually go bust”
Online estate agents on the up
Adam Day, director of online estate agent Hatched.co.uk says online estate agents have a market share of between 2% and 5% and are set to grow even further in the coming decade. “We predict that online estate agents will grow to between 10% and 15% of the market by the end of 2015. Between 60% and 70% of all properties will be listed by online estate agents by 2020, wiping out over 7,000 high street estate agency offices across the UK,” he says. “To counter this growth, high street estate agents will start to move their operations ‘upstairs’ or begin to offer a menu of services, or ‘lite’ versions to try and compete with the new breed of online estate agents.”
One-bedroom properties in ‘Prime’ London up £60,000 in last year
All the house price indices are showing dramatic rises in London – the latest comes from Marsh & Parsons who estimate that the average value of one-bedroom properties in what estate agents call ‘Prime’ London has risen by over £60,000 in the past year, a 14% annual growth. It means that the average price of a one-bedroom property in Prime London is £502,139 (in ‘Prime Central’ London – Chelsea, Kensington, Notting Hill, Holland Park and Pimlico – it’ss £583,036).
Peter Rollings, CEO of Marsh & Parsons, said: “Competition for one-bedroom properties in particular is fierce. Spurred on by the rapidly improved availability of mortgages and low interest rates, first-time buyers are flooding the market in competition for the best properties in this price bracket. In addition, one-bedroom properties generate the best rental yields, making them a popular purchase for buy-to-let investors. We have noticed many young, would-be buyers adopting more European attitudes to renting, with many choosing to become long-term renters, rather than saving up for a deposit. As a result, the value of one-bedroom properties in Prime London is shooting up the scale.”
Garden by the beach
The 4 bedroomed house pictured above at Pett Level Road, Hastings, was designed by art collector Thomas Watkins and is right next to Pett Level beach with, unsurprisingly, marvellous views of the sea. It’s on three levels with the whole of the top level consisting of just one room and the landscaped garden, also pictured, leading directly onto the sea wall and beach.
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