A new report, conducted by the Centre for Economics and Business Research for the financial services group Legal & General, claims almost 450,000 first time buyers could get on the property ladder this year if older owners released capital from their homes.
The report suggests that this year some three per cent of home owners over 55 have taken out an equity release lifetime mortgage - a figure unchanged from last year.
But L&G says that if far more over-55s adopted this strategy, they could help 442,900 individuals buy a home this year.
Citing Office for National Statistics data, the research says that over the past 20 years house prices have increased by 259 per cent with wages rising only 68 per cent. “By freeing up capital that is tied into a family home, individuals will have the opportunity to support family members or friends onto or up the property ladder” urges L&G.
However, the CEBR report suggests this is unlikely to happen in the short term as a significant majority of over 55s - some 59 per cent - say they do not need the extra cash that equity release would offer.
“Releasing equity from a family home has the potential to play a role in tackling our housing market’s affordability crisis. By releasing equity using a lifetime mortgage, parents and grandparents have the opportunity to help their loved ones onto the property ladder” says an L&G spokesman.
The Bank of Mum and Dad will provide funding towards around...
Older homeowners gifted an average of £42,500 to younger relatives to...
The Bank of Mum and Dad is now officially one of...
Research from Legal & General and the Centre for Economic Business...
The predictions game can be tricky. Sometimes you just don’t know...
Leading UK property auctioneer Bond Wolfe has broken through the £100...
Uncertainty triggered by the new Labour Government and taxation concerns that...
In today's rapidly evolving property market, the focus on reducing transaction...
.png)
An exciting new collaboration between TVPN, EstateApps and Paul Long is...
By Mike Bilboe, Face For Business Buying or selling a home can...
LSL Estate Agency Franchising is home to one of the UK’s...
.jpg){kind=logo}
B-hive Block Management Partners Celebrates Major Milestone With Over 100 Businesses...
.jpg)
Tell us a little bit about National Home Move. We are a...
If you’re thinking about becoming an Estate Agency franchise or converting...
Estate agents and lettings agents have a legal obligation to protect...
You don’t have to simply accept things as they are when...
From the uptick in house sales in January to a house price...
Happy birthday to us….and all members of the The ValPal Network! We...
With a combined value surpassing £7.4 trillion, the UK’s 29 million...
%20-%20IMAGE%20Client%20Accounting%20%E2%80%93%20what%20are%20your%20options.jpg)
The benefits for letting agents to outsource their client accounting is...
When almost all agents and developers use the tried and tested formula...
I think we can all agree that the National Trading Standards...
.png)
As domestic battery storage systems become increasingly prevalent in UK homes,...
.png)
A team from The ValPal Network joined industry Facebook ads expert...
.png)
In this interview, Riccardo Dawson, Chief Operating Officer at Alto and...
%20(002).png)
In today's fast-paced and ever-evolving property industry, it’s essential that forward-thinking...
A client account is essential to your lettings business, but the...
As electric vehicles increasingly populate our roads and the necessity for...
As estate agents, it is important to make sure that your...
Estate agency has changed. No longer is it required to sit in...
Changes to consumer behaviour usually arrive in waves. Most of the...
At iamproperty we are excited to share the announcement of our...
It’s no secret – 2023 is a difficult year for the...
In an exclusive interview with Estate Agent Today, Simon Coaker, Sales &...
2023 has been coined as ‘the year of AI adoption’, and...
%20(002).jpg)
There are a few common questions that arise when the issue...
As a signage company we know we have a serious responsibility...
The Government’s mini budget on September 23 was anything but ‘mini’...
Agent websites have become more crucial than ever in attracting new...
.png)
Who are you and what does it say on...
Who are you and what does it say on...
Who are you and what does it say on...
Join the conversation
Jump to latest comment and add your reply
The Barclays Springboard mortgage is the one that leaves me drop-jawed. Not only do they want a property as security but your/your parent's life savings too! How about taking a charge over your first born too?
Like Help to Buy, Shared Ownership and a range of mortgages offered by lenders aimed at first-time buyers, the Springboard mortgage looks good until you start to dig down into the detail of what is actually on the table. Then it starts to look a lot less rosy.
What ever happened to the Lifetime ISA? All seems to have gone quiet on that front in recent weeks.
Please login to comment