First-time buyers who relied on the Bank of Family to buy their homes lifted to 12% in November, up 2% from a month ago, “highlighting the ongoing need for external financial support in the property market,” data from Legal & General Ignite shows.
Overall, Legal & General’s sourcing platform saw FTB searches lift 9% last month compared with the month before, following a 13% surge in October.
The Bank of Family, financial help from extended family members, is expected to fund 318,400 housing transactions this year, according to a Legal & General and the Centre for Economics and Business Research survey in September.
The criteria platform adds that the total number of all searches across the site increased by 1% in November from the previous month.
The firm says: “Despite economic uncertainties and the challenges posed by the cost-of-living crisis, overall market demand remains resilient.”
Among property investors, searches related to ‘second residential property’ jumped 29%, while enquiries for houses in multiple occupation products lifted by just under 20%, “reflecting the growing interest in diverse property types within the portfolio landlord segment”.
But the platform points out that “affordability remains a key concern for borrowers”.
It says broker enquiries for ‘default unsatisfied’ rose by 6%, “pointing to a broader market issue of homebuyers attempting to clear debts before applying for mortgages”.
Legal & General Mortgage Services managing director Kevin Roberts says: “As the property market continues to evolve, it’s clear that FTBs are driving significant momentum, seeking support from the Bank of Family to navigate affordability challenges.
“The data from Legal & General Ignite also highlights the resilience of the overall mortgage market, with diverse trends among portfolio landlords and a sustained interest in capital raising, even during these uncertain times.
“Affordability does remain a persistent concern though, reflected in the notable level of defaults and missed mortgage payments, as well as the continued reliance of first-time buyers on the support of family and friends.”
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