Bank of mum and dad: the buyers funded by parents
by Housesimple on 6th June 2016
The average price of property in Britain is now far beyond the reach of many first-time buyers. Luckily for them, it looks like good old mum and dad are stepping in to help. Recent research by Legal & General found that parents are behind a quarter of British mortgages. This year, parents are on track to lend £5 billion to help their children onto the property ladder. This makes the "bank of mum and dad" one of Britain's top ten mortgage lenders. We hope our younger readers are giving dad an extra big 'thank you' on 19th June.
Target your market
Those planning private house sales have two audiences to think about when writing a listing. As well as making the property sound attractive to younger buyers, it also needs to appeal to their parents. Mum and dad may be less enthusiastic, having been up a few steps of the property ladder and will be thinking practically. Be sure to highlight features that will keep everyone happy.
Public transport, shops and restaurants appeal to buyers of all ages. In your listing you should mention which bus or train routes serve the area and how far it is to the nearest bus stop or train station. Young buyers invariably enjoy having plenty of entertainment nearby, so talk about gyms, nightlife, cinemas, the local art scene and nearby parks. You should also mention practical amenities such as supermarkets, medical centres, dentists and schools.
If it's a known student area, parents may have worries about noise levels during the weekend; put in a reassuring note about this if you can. If crime in your area is low, it's worth mentioning that too.
The parents will be looking at the property as an investment opportunity. They'll be hoping to make a profit when their children sell. Alternatively, they may want to keep it as a rental or use it as a retirement home in the future. You can check the Land Registry to see how property prices in your area have changed over the past few years. Visit rental websites to find out what kind of prices could be expected if your buyers later decide to lease out the property. You may also want to do a quick Google search to see if the area has been named as the next property hotspot.