Searches for borrowers using gifted deposits climbed by 35% in August Searches for borrowers using gifted equity or making a concessionary purchase also rose by 75% in August Searches on behalf of portfolio landlords jumped by 22% from July to August
According to the latest data from Legal & General Ignite, the free mortgage research and sourcing platform, borrowers relied on gifts from their loved ones to get on the property ladder in August. The data also confirmed that market activity is being driven by portfolio landlords, demand for holiday lets, as well as ongoing interest from overseas buyers.
Buyers lean on family wealth to achieve homeownership goals
In line with recent trends, borrowers are continuing to use financial support from their loved ones to secure a footing on the housing ladder. The data shows that searches on behalf of borrowers using gifted equity or making a concessionary purchase rose by 75% in August, and searches for those using gifted deposits also climbed by 35%.
This comes as little surprise given that Legal & General’s new Bank of Family research found that 77% of buyers receiving family assistance directed at least a portion of their funding towards a deposit. Buyers’ heavy reliance on family contributions is also highlighted in searches for guarantor/family assist increasing by 15% in August.
Other buyers opted for low-deposit paths to homeownership with searches for shared ownership schemes rising by 11% in August.
Portfolio landlords in no rush to exit the market and drive activity in August
Searches on behalf of portfolio landlords climbed by 22% from July to August as buy-to-let investors looked to expand their businesses. Other landlords used financial support to enter the market, as searches for landlord/vendor gifted equity jumped by 18% in August. Additionally, searches for holiday let/Air B&B