Many first-time home buyers are now skipping a generation in order to fund their purchases and could be “putting the family silver at risk”.
Grandparents are to help fund one in six purchases of a first home, data compiled by Simpson Millar solicitors suggests.
The concern from solicitors is that with a third of couples not putting a formal legal agreement in place - despite contributing inequitable levels to a deposit - any money passed down by older generations may not be appropriately ring-fenced.
“The benevolent grandparent has always been a fixture in many a family. But it is only in recent years that this has routinely involved providing thousands of pounds to help the grandchildren reach the first rung of the housing ladder.
“Not all house purchases end up being ‘forever homes’. With this in mind, it is only sensible to have paperwork in place to ensure equity is shared equitably when ways part,” said Lisa Gibbs of Simpson Millar.
It was also outlined that the proportion of first-time buyers that were expecting some form of gift or loan from either parents or grandparents was much higher than outlined in the English Housing Survey 2014-15.
According to the survey, 46 per cent of first-time buyers would expect help compared to the 27 per cent that was stated in English Housing Survey.
In addition, 14.5 per cent of first-time buyers said in the latest survey that they would expect financial assistance from both parents and grandparents.