More first time buyers being helped by family, say agents

A third of estate agents say first time buyers they deal with are being supported financially by parents or grandparents, according to research by equity release service Key Partnerships. It quizzed 104 estates agents across the UK and said that nearly half recorded an increase in the number of first time buyers being helped by family. Perhaps predictably Key Partnerships says equity release is one of the main ways grandparents in particular can raise funds to help grandchildren get on the property ladder, but that only 36% of estate agents were aware of this. Key Partnerships says most first time buyers turn to their parents or grandparents for help with a deposit, which on average is £33,000 according to lender the Halilfax, up from £17,500 ten years ago. In London, the average first time buyer deposit is £91,400 and in the South East, £44,000. “Estate agents are valued as a source of financial guidance and it is clear that those who can discuss equity release as a potential alternative fund-raising solution will be able to benefit from an additional revenue stream by referring potential clients to a specialist as well as securing more house sales,” says Will Hale, a director…