There was a significant rise in borrowers relying on financial support from family members in November as the resurgence in first-time buyer activity continued, data from Legal & General Ignite has revealed.
Legal & General Ignite recorded a 9% month-on-month increase in searches for first-time buyer products in November.
This followed a robust 13% surge in October, with first-time buyer searches consistently ranking in the top four since September 2023.
However, first-time buyers were found to be increasingly reliant on financial support from the ‘Bank of Mum and Dad’, with searches for products accepting gifted deposits seeing a 10% rise.
November also saw a further 12% increase in searches for gifted equity and concessionary purchases, highlighting the ongoing need for external financial support in the property market.
Earlier this year, research and forecasts from Legal & General and the Centre for Economics and Business Research (Cebr) found that financial support was expected to help fund 318,400 housing transactions in 2023.
This was the highest number of property purchases using family gifting since Legal & General began tracking family lending in 2016.
Despite economic uncertainties and the challenges posed by the cost-of-living crisis, overall market demand remains resilient, according to Legal & General’s free search and criteria tool.
The total number of searches increased by 1% from October to November.
Meanwhile, ‘Capital Raising’ emerged as the third most popular search criteria over the past two months, recording a significant 16% increase since September.
Kevin Roberts, managing director at Legal & General Mortgage Services, said: “As the property market continues to evolve, it’s clear that first-time buyers are driving significant momentum, seeking support from the Bank of Family to navigate affordability challenges.
“The data from Legal & General Ignite also highlights the resilience of the overall mortgage market, with diverse trends among portfolio landlords and a sustained interest in capital raising, even during these uncertain times.
“Affordability does remain a persistent concern though, reflected in the notable level of defaults and missed mortgage payments, as well as the continued reliance of first-time buyers on the support of family and friends.
“It is important that all borrowers, no matter their circumstances, seek the guidance of an expert adviser, to ensure they are taking the optimum path in what remains a fast-moving and complex market.”
