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Home movers dependent on financial assistance

Home movers dependent on financial assistance

Category: Mortgages

Updated: 10/06/2013
First Published: 10/06/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Over a quarter (26%) of existing homeowners have claimed they would be unable to move home without the financial support of friends or relatives, according to research commissioned by the Council of Mortgage Lenders (CML).

Whilst the challenges facing thousands of first-time buyers are well documented, the study by YouGov found many prospective second steppers are finding the prospect of moving higher up the property ladder increasingly unlikely due to a lack of affordability, despite owning capital in their homes.

Increasing moving costs coupled with insufficient levels of savings, has meant a large number of would-be movers are having to either remain in their existing homes or call on friends and family members to provide extra funding.

Unfortunately, the prospect of receiving financial support from loved-ones appears to be slim given the current economic climate. Just 12% of would-be home movers needing financial help actually expect to receive any.

The CML stated: "While there will be many factors at play in the individual's house purchase decision, the deposit constraint, and the ability or otherwise of family and friends to help address it, continue to loom fairly large.

"The problem of insufficient savings for a deposit is by no means limited just to first-time buyers."

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