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Predictions for the 2016 property market include more family financed sales

According to a recent analysis by JMW Solicitors, 2016 will be a year which sees even more people relying on their family and friends to help them buy a property.

As buyers are facing more challenges to be able to get onto the housing ladder, with higher house prices and demand for homes rising, borrowers are more likely to turn to family for financial assistance. The solicitor believes that the next 12 months will see the number of people being helped by family to buy a house increase.

National data which was taken from the English Housing Survey, covering the last six years, has been studied by JMW. The solicitors stated that since 2008 and the financial crisis, the percentage of people buying a property with the help of family, has increased every year.

In 2008-09, 5.3% of respondents stated that they had bought a property with “a gift or loan from family or a friend”. By 2013-14, this figure had reached 7%. One of the partners at the solicitors, Andrew Garvie, stated that he had dealt with a higher number of buyers in 2015 that had funded their deposit using money from family members. He added that he believed that number would be higher in 2016.

Garvie further added that although there were many benefits to this type of funding, it was necessary to take the appropriate steps to protect those funds in the future. When buying a house it is advisable to consult a CeMAP trained mortgage adviser, who will offer suitable advice regarding finance.

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