Wednesday, November 5, 2008

Half of first-time buyers put down deposits of £67,000 – with help from their parents

Half of first-time buyers put down deposits of £67,000 - with help from their parents

"First-time buyers who get financial help from their parents are putting down an average deposit of £67,000 in London - £15,000 more than their average salaries according to figures released today. The Council of Mortgage Lenders said those who do not receive any parental help in the capital put down £19,000, despite earning an average of £57,000 a year."

Posted by becky @ 01:26 PM (1281 views)
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16 thoughts on “Half of first-time buyers put down deposits of £67,000 – with help from their parents

  • Hmm. Let’s have a look at the first two paragraphs:

    “First-time buyers who get financial help from their parents are putting down an average deposit of £67,000 in London – £15,000 more than their average salaries according to figures released today.

    The Council of Mortgage Lenders said those who do not receive any parental help in the capital put down £19,000, despite earning an average of £57,000 a year.”

    £67,000 – £15,000 = £52,000 average salary yet the next paragraph says that average salary is £57,0000. Either the mail have mangled the original source for this story or they can’t count.

    I suspect that many of the FTBers in London are about to get fleeced big time anyway.

    You can be sure that the CML are looking out for the best interests of FTBers! Not.

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  • “First-time buyers, a key source of liquidity in the property market, are becoming more reliant than ever on help from their parents, and first-time buyers, a key source of liquidity in the property market, are becoming more reliant than ever on help from their parents”. – hmmm silly silly, shouldnt the parents look back and ask why they didnt need help with their purchases and then understand that what they are doing just extends unaffordability. Spose they will learn — the hard way!

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  • the average salary in london is not £52k or £57k. Wishful thinking!

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  • The deposit from the parents will be wiped out by price declines in the next 12 months – why would anyone pump money into a falling illiquid asset class?

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  • I wonder if the parents looked at it as some sort of investment in property. Oh dear.

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  • Notbuyingoneyet says:

    On this income, why don’t they buy a cheaper property outside London and commute, or take digs Mon to Fri? Surely this would be better than getting up to your eye balls in debt servicing an extremely high mortgage.

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  • I’m sorry, I just don’t believe these statistics. No first time buyers I know have put down much more than 5% and up until recently I knew many people who had No deposit and 125% mortgage. This just not sit right with my experience, so unless there are 10 first time buyers putting down £10 million each I can’t see how this can be.

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  • Quiet guy:

    I read it as the average salary of FTBs who have assistance is £52k and £57k for those without assistance. This would make sense if FTBs with assistance buy younger (and hence earlier in their careers). These are very high salaries – the lesser paid FTBs seem to have evaporated (which we have already guessed at here).

    The haunted:

    The average deposit of those with assistance is £67k – if there is only one example and he puts down £67k, then the statistic is right.

    At some point London will run out of £60k earners wanting to buy property in a falling market and when that happens the last prop is gone. Then we will really see a crash.

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  • george monsoon says:

    What wealthy and generous parents these fortunate MINORITY have….!!
    And all in the South of England.. what a surprise.

    Oh how the other half live..

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  • @the haunted

    I’m glad to hear you are also spectical about the salaries given. Maybe London salaries are much higher than I thought but I can’t help wondering if someboy is getting creative with the numbers.

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  • It’s in the Daily Mail, it MUST be true…

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  • I suspect the average of £57,000 is for dual income, as half of this is about the average income.

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  • Are we missing the point here. How many first time, second time, third time buyers earn in excess of 50K a year. I know a couple, but most people I know are within the 25-35K bracket (a good wage by anyone’s standard) and even that is more than most. Basically the Daily Mail is saying that you have to be in a highly paid job to be stupid enough to be buying now!!!!!!!!!!!!

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  • I don’t think any of this article is based on genuine statistics. There is no way the average wage is £57,000, unless it’s a joint income of a coupl, even then I think that’s optimistic

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  • Good point bystander. I would earn about 35 – 40k per annum as an experienced solicitor (over 10 years) in the smoke.

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