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Abbey: Parents expected to help out with first purchase

25 August 2006
New research from Abbey suggests that many first-time buyers (FTBs) expect their parents to help out financially when it comes to making their first property purchase.

Nearly a quarter (23 per cent) of FTBs said they expect their parents to give or loan them money for a deposit, 12 per cent expect their parents to act as a guarantor on their mortgage and 13 per cent expect to have some furniture or appliances bought for them.

As well as assisting with the financial aspects of a home purchase, FTBs also thought their parents would help with the practical elements of moving house: one in three expected a hand with DIY or decorating and nearly half expected a hand with completing the move.

"Many first-time buyers need a significant leg-up from parents to have a realistic chance of getting on the property ladder," said Jeff Scott, Abbey's head of mortgages.

"It is commonplace for parents to take their children back into the family home so that they can save for a deposit, as well as helping them out with cash gifts or loans."

Rising property prices mean the situation for those looking to get onto the property ladder for the first time will only get more difficult, so much so that one in four respondents to the Abbey survey even admitted they would think about abandoning their aim to buy altogether if prices continued to escalate.

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