London renters gifted cash by family members to buy property

Over two-thirds of all new homeowners in London received family support to purchase their homes. 

‘Bank of Family’ recipients in London received £30,200 on average to support their transaction, only beaten by those in the East of England who received an average of £32,100.

Data from Legal & General suggests that elsewhere, however, aspiring buyers are less reliant on the Bank of Family. 

In the East Midlands and West Midlands, people received the least on average from friends and family, at £20,000 and £19,800 in each region, respectively.

The family lending and gifting patterns have been revealed in revealed Legal & General’s ‘Rebuilding Britain’ index which found that the ratio of average house prices as a percentage of income is highest in London, followed by the South East, South West, and East of England.

Another factor contributing to the ongoing rise in Bank of Family lending is the enduring impact of the pandemic and the ongoing cost-of-living crisis, says L&G. 

According to the report, high levels of inflation have meant that one in three households has less than £500 left after paying for their basic outgoings each month and six per cent of households are left with nothing.

Bernie Hickman - chief executive of Legal & General Retail - says: “Our latest research shows just how the high cost of housing, particularly in London and other major cities, continue to shape the UK. There are clear differences between urban and rural areas, and the lack of affordable housing in some areas is a legacy that will impact many peoples’ lives for years to come.”

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