Parents opting to downsize to help children

09-Nov-2007

Parents are looking to downsize their properties not only for "empty nest" reasons but also so they can help their children get onto the first rung of the housing ladder themselves, Savills has said.

The firm has suggested that as many as 30 per cent of all £1 million sales that it handles outside of London are for downsizing purposes, adding that the option remains much more popular than equity release.

Parental help is becoming an increasingly important part of the first time buyer experience, the estate agency added.

The comments come as the National Housing Federation (NHF) has said that areas such as Milton Keynes and Hemel Hempstead are rapidly growing in size due to first-time buyers being forced out of London itself.

"What we have seen is that the proportion of first time buyers who are getting an injection of capital from other sources – and relying on the parents to help them out – has increased. And that has been an aspect that we have seen in the first time buyer market," said Savills residential property director Lucian Cook.

"I don't think that could be said to be squeezing out first time buyers – [they are] probably facilitating first time buyers getting in to the market," Mr Cook added.

The NHF, meanwhile, has said that more homes of all shapes and sizes should be built in both the commuter belt and in the capital in order to help resolve the affordable housing crisis.

First time buyers 'risking extinction'
http://www.firstrungnow.com/news/first-time-buyers-risking-3587.aspx

Buyers forced into the rental sector
http://www.firstrungnow.com/news/buyers-forced-into-the-3564.aspx

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