The Bank of Family is a term used to describe the financial support that families provide to help their loved ones buy a home. In South London, the Bank of Family is playing an increasingly important role in helping people get onto the property ladder.
According to research by Legal & General, 47% of all homes purchased in South London this year will be partially funded by the Bank of Family. This is up from 42% in 2022 and 35% in 2021.
The average amount of money being gifted by families in South London is £30,200. This is higher than the national average of £25,600.
The Bank of Family is playing such a big role in South London because house prices in the area are so high. The average house price in South London is now £500,000. This is out of reach for many people, even those who have a good job and a steady income.
The Bank of Family is helping to bridge the gap between what people can afford and the cost of buying a home in South London. It is also helping to level the playing field for people who do not have wealthy parents or grandparents.
Of course, not everyone has access to the Bank of Family. This can create inequality in the housing market, with those who have family support being able to buy a home sooner and easier than those who don't.
The government is aware of the problem and is looking at ways to make it easier for people to get onto the property ladder without relying on the Bank of Family. One of the proposals is to introduce a "shared equity scheme" where the government would provide part of the deposit for a home.
This is a positive development, but it is important to remember that the Bank of Family is not going away anytime soon. It is likely to continue to play an important role in helping people get onto the property ladder in South London and other parts of the country.
Here are some tips for homeowners who are considering using the Bank of Family to help them buy a home:
- Be clear about what you need from your family. Do you need a loan or a gift? How much money do you need?
- Be honest with your family about your financial situation. They need to know what they are getting into.
- Make a plan for repaying the loan or gift. This will help avoid any problems down the road.
- Be grateful for the help your family is providing. This is a big gesture and it is important to show your appreciation.