Helping Your Loved Ones onto the Property Ladder

For many first-time buyers, the path to homeownership can feel tricky, especially in today’s property market. High deposits and rising rents can leave hopeful buyers feeling overwhelmed and unsure of their options. It’s likely that they will turn to trusted family members and friends for guidance.

Parents, older siblings, extended family and friends all often play a vital role in the home-buying journey. Whether it’s emotional support, practical help or financial help via the so-called ‘Bank of Mum and Dad’, involvement in your loved one’s life could make all the difference.

Happy children going upstairs, family with boxes moving in house

While support has always mattered, it’s worth remembering that today’s buyers face vastly different conditions – average house prices have quadrupled since the 1990s* and deposits are now often over £60,000, making family help more crucial than ever.**

If you’re wondering ‘how can I help my loved one onto the property ladder?’, look no further.

Understanding the possible barriers

First-time buyers are facing hurdles like saving for a deposit, affording monthly costs and understanding complex mortgage options. By familiarising yourself with these challenges, you’ll be better placed to offer realistic, informed support. Sit down with a cuppa and read through our news page to familiarise yourself with the homebuying journey.

Offering financial support

Not every family can offer help via the Bank of Mum and Dad, but if you’re in a position to assist your loved one financially, you have some options. Gifting or contributing to a loved one can help buyers put down a deposit and even afford the moving in process. Also, acting as a guarantor may boost their borrowing potential. It’s essential to get professional financial advice, but understanding your options is a strong first step. Our blog post on selecting a solicitor and a mortgage broker is a good place to start.

Find out more about Shared Ownership

Shared Ownership is a government-backed scheme designed to help people get on the property ladder. It allows buyers to purchase a share of a home, typically between 25% and 75%, whilst paying rent on the remaining share. Over time, Shared Owners can increase their share as their financial situation changes, all the way up to 100%. We have an entire guide to Shared Ownership, which you can check out here.

You can support your loved one by researching Shared Ownership homes available in your area. You can also attend events and open days, where you can meet housing providers, explore available developments and ask questions. We’d also suggest that you encourage them to sign up to mailing lists for the latest updates and releases.

Already aware of the benefits of Shared Ownership, Aisha bought a 25% share of a two-bedroom Shared Ownership apartment at Barking Riverside: “My parents bought their home through Shared Ownership, so I was already aware of how it worked. It made getting onto the property ladder much more achievable for me, especially as a solo buyer,” she explains.

Offer practical and emotional support

The buying process can be overwhelming, especially for first timers! By joining them at viewings or helping them review legal documents or mortgage offers, you could really be offering the helping hand they need. You could even educate them on their credit score. Sometimes, simply being a sounding board during a big decision is the most valuable thing you can do.

Looking back on her journey, Aisha is proud of how far she has come. “All of my friends and family are so impressed that I’ve stepped onto the property ladder.”

“I’d love to think that more and more Gen Zs are looking to step onto the property ladder, but I am fully aware that without schemes like Shared Ownership, it’s just not possible. It’s getting even harder in the current climate, where it feels like we’re living paycheque to paycheque.”

“Still, people see the value in homeownership. Most of us have seen our parents, grandparents and even older siblings step onto the ladder – it’s our turn! We deserve it.”

Want to learn more? Visit lqhomes.com to explore our available developments and for information on Shared Ownership.