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Bank of Mum and Dad forking out £32k on average to help kids buy homes

Voice Of EU



Two thirds of parents say they have helped their child to buy a home by contributing towards the deposit, new research has revealed.

And among the 64 per cent of parents who said they had offered financial assistance with the deposit, the average contribution amounted to £32,440.

A further 10 per cent said that while they did not contribute, other members of the family did.

Two thirds of parents say they have helped their child to buy a home by contributing towards the deposit

Two thirds of parents say they have helped their child to buy a home by contributing towards the deposit 

The survey reveals the extent of how few young adults are able to get onto the property ladder without financial support from the Bank of Mum and Dad or wider family.

The degree of generosity extended even further for some, with 14 per cent of parents saying that they gave their grown-up children more than £50,000 towards their home.

And 11 per cent said they paid the entire deposit, according to the findings by property website Zoopla.

At the same time, 4 per cent said they went even further and bought their child the entire home, mortgage-free.

The pressures on younger buyers to find larger deposits comes amid a rise in house prices.

Halifax revealed this week that house prices have recorded their biggest three-monthly growth in 15 years, with the average home in Britain worth almost £273,000. 

It said that typical values increased by 3.4 per cent on a rolling quarterly basis in November, the strongest quarterly growth figure since 2006.

Between October and November alone, the cost of a home increased by 1 per cent or around £2,700. And since the beginning of the pandemic in March 2020, and Britain first entering lockdown, house prices have risen by £33,816, which equates to £1,691 per month, Halifax said.

Quarterly house price growth hit a high not seen since 2006, according to Halifax

Quarterly house price growth hit a high not seen since 2006, according to Halifax

Parents said they helped for a number of reasons, according to the Zoopla survey, including simply because they could afford to do so.

In addition, 24 per cent said their children would never have been able to afford to buy a home otherwise.

Meanwhile, 18 per cent said it was a result of guilt or sympathy, believing it is much harder for younger people today to get on the property ladder than it was for them.

For many parents, a deposit is just the start of the financial help they give their children when it comes to their home.

Indeed, 17 per cent of parents whose adult children live away from home said they currently help them with rent or mortgage payments, with 8 per cent say they do so every month.

In total, 36 per cent said they have helped with rent or mortgage payments at some stage.

It isn’t just rent and mortgage payments parents are helping with either. More than one in ten parents whose children live away from home – at 11 per cent – said they give their adult children a regular allowance for home-related expenses, while 28 per cent offer them support, albeit not a regular amount.

A total of 64 per cent of parents said they had offered financial assistance with the deposit, with the average contribution amounting to £32,440

A total of 64 per cent of parents said they had offered financial assistance with the deposit, with the average contribution amounting to £32,440

The survey suggested that many grown-ups will be receiving money towards a home purchase in their stocking from their parents this year.

It said that 3 per cent of British parents with children over the age of 18 said they plan to give their children money towards a deposit for a home for Christmas this year.

Meanwhile, 4 per cent said they have done so for Christmases in the past. This suggests that the trend will be more popular than usual this year, according to Zoopla.

It is not just deposits that parents are giving their children as presents for special occasions. Nearly one in ten parents – at 8 per cent – whose grown-up children own a home said they have given them money for their mortgage as a Christmas or birthday present, while 11 per cent of parents whose children live away from home said they have given them money for rent as a present.

Even more at 15 per cent – have given them money for bills, 13 per cent for repairs or 12 per cent for decorating costs as a Christmas or birthday present.

17 per cent of parents whose adult children live away from home said they currently help them with rent or mortgage payments

17 per cent of parents whose adult children live away from home said they currently help them with rent or mortgage payments

Over half of all respondents in the survey, at 53 per cent, think that parents should help their children get on the property ladder if they can afford to, while 12 per cent think parents should help no matter what.

Over half of parents – at 55 per cent – said they believe that it was easier for older generations to get on the property ladder, and 50 per cent believe that most younger adults would not be able to get on the property ladder today without help from their parents.

The Zoopla survey of 1,087 parents to adult children was carried out between November 19 and December 1 this year.  

Daniel Copley, of Zoopla, said: ‘While it is accepted that many parents give their children help to get on the property ladder, these new figures reveal just how high a proportion of young adults who own homes today have had financial support from their family.

‘It shows that those who managed to ‘go it alone’ and purchase a home without parental support are very much in the minority and that the transfer of intergenerational housing wealth is key.

‘When looking at the data, it is very clear that average house prices in the UK have increased at a greater rate than salaries over recent decades, reinforcing the notion that it is harder for young adults to get on the property ladder today than it was for previous generations.’

He added: ‘Putting more money towards the purchase of a home can help reduce mortgage payments and in turn can unlock lower interest rates, so it’s clear that, when it comes to property, the ‘Bank of Mum and Dad’ will be in business for a long time to come.’

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Barings provides €72m loan for social housing portfolio (GB)

Voice Of EU



Barings has provided a €71.9m (£62.9m), 15-year loan to finance the acquisition of a social housing portfolio in England by Domus Social Housing Ltd (Domus). Provided under its separate account with investor Phoenix Group, the UK’s largest long-term savings and retirement business, it is Barings’ first real estate debt exposure to affordable housing in Europe. 


Domus and Fiera Infrastructure Inc, were advised by Excellion Capital on the milestone transaction in which Domus acquired the portfolio, consisting of 54 properties in London, the midlands and the northwest of England with more than 850 beds in the underlying units. The assets are let to UK housing providers that specialise in managing homes for residents with a range of needs, including those experiencing homelessness and domestic abuse. There are over 320,000 people estimated to be sleeping rough, in homeless shelters or in other temporary housing in the UK, according to analysis from Shelter in 2018.


Chris Bates, Head of Europe Real Estate Debt Origination at Barings, said: “Having been actively lending against UK and European residential property for some time now, we were keen to explore opportunities in the affordable housing sector and believe this portfolio is a substantially attractive one to launch us into the market. We are increasingly seeking out opportunities to invest in residential property, given that it provides a long-duration, reliable income that hedges against rising inflation, and are interested in a range of asset classes such as affordable housing, student accommodation, build-to-rent and the private rental sector.”


Sam Mellor, Managing Director and Head of Europe & Asia – Pacific Real Estate Debt at Barings, said: “Increasing our exposure in affordable housing is the right thing to do from both a social impact and a financial investment perspective, reflecting both Barings’ values as a company and our investors’ priorities. With a housing crisis in the UK, as across much of the world, the social case is crystal clear. Barings has significant expertise and experience in the affordable housing sector in the U.S., upon which we’ve drawn for this investment, and we’re eager to continue to combine our global research capabilities with our on-the-ground knowledge to seek to secure returns for our investors.”


Prabjot Mann, Head of Property at Phoenix Group, said: “Phoenix is delighted to have provided €71.9m (£62.9m) for Barings’ first loan supporting affordable housing projects in Europe. Phoenix Group is committed to investments that have a clear social benefit and this loan forms part of our growing portfolio of investments in affordable, supported and social housing. This funding will provide housing to those most in need, and is fully aligned with our approach to responsible investment.”


Alina Osorio, President of Fiera Infrastructure, said: “Domus is a new social infrastructure platform focused on providing critical shelter and support to the most vulnerable members of the community. The investment addresses the social housing supply imbalance in the UK by providing quality accommodations in the areas most at need. We plan to grow our footprint through additional acquisitions, which have been identified and secured in areas experiencing housing supply shortages. We are pleased to have worked with Barings on this milestone financing and look forward to witnessing its significant and measurable social impact on the individuals and communities in which Domus operates.”


Gareth Taylor, Director at Excellion Capital, said: “We are delighted to support Domus Social Housing with its acquisition by working with Barings to provide funding of socially responsible and much needed supported housing across the UK. These properties give the unhoused and most vulnerable individuals in our society the accommodation and the specialist care they require.”

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How to sell your home in 2023: Ten top tips

Voice Of EU



Energy price worries, double-digit inflation, strikes, war and a new government — there’s a lot going on right now, and it’s all beginning to sap the confidence of sellers and buyers.

The market is still robust, with Halifax this month reporting that house prices are 11.5 per cent higher than a year ago, and the typical home now costs a record £294,260. 

But some potential sellers aren’t convinced and believe it’s better to wait until spring to see if buyer confidence returns.

Holding off: The housing market remains robust, but some potential sellers aren't convinced, and believe it's better to wait until spring to see if buyer confidence returns

Holding off: The housing market remains robust, but some potential sellers aren’t convinced, and believe it’s better to wait until spring to see if buyer confidence returns

Of course, the cuts to stamp duty that Prime Minister Liz Truss and Chancellor Kwasi Kwarteng have announced may change a few minds.

But research by savings website VoucherCodes suggests that rising costs have forced 11 per cent of all potential buyers to delay by at least a year.

And a separate study by Nationwide Building Society says seven in ten would-be first-time buyers are putting their plans on ice for some months at least.

So if you’re looking to sell and prevent your home from languishing on the market for months on end, it may be best to spend the next six months getting into pole position for the market in 2023. 

Here are our ten top tips…

1. Take top-quality photos

Choose your estate agent now and make sure they take photographs of your home as soon as possible, while the weather is still relatively good. 

Then it will look its best regardless of when you decide to list it — and you can choose to start marketing at short notice if the conditions are right.

2. Help your buyer

‘Create a pack including everything you can to reassure buyers and cut delays,’ says Clare Coode, an agent with Stacks Property Search, a buying agency.

‘This should include, for example, a certificate for your wood burner, up-to-date electrical certificates, planning permissions, building regulation sign-offs, information about ownership of boundary walls and documents related to access and rights of way.’

3. Fix a mortgage deal

With interest rates rising, and likely to increase for another 18 months according to commentators, securing a competitive multi-year, fixed-rate mortgage in principle now makes sense. 

But many of these deals have to be acted upon within a few months, so ensure you’re in a position to buy before the deadline expires.

4. Boost energy efficiency

This is a key issue for buyers, even after Liz Truss introduced a financial package to ease the burden of increased energy costs.

‘Double glazing, improved insulation or a new boiler could be achieved in a few months, and would likely boost both the appeal and asking price of your home,’ says Location, Location, Location star Phil Spencer. 

‘There are also solar panels, but these won’t add enough value to recover their cost in the short term.’

5. Update the kitchen

Consumer group the HomeOwners Alliance says the kitchen is worth more per square foot than any other room in the house, so it’s worth making it look tip-top.

Spend autumn and winter refacing the cabinets and smartening up the walls and floor. 

But don’t fit a new kitchen — you won’t recover the cost if you sell soon and an installation hitch could derail plans.

6. Be competitive

Try not to pay too much attention to any one house price index, but look at the overall trend and be prepared to set a competitive asking price in the New Year.

Many estate agents say an asking price at the lower end of your expectations will encourage rival buyers to bid against each other — good news for any seller. 

And an overly ambitious price may see the home stuck on the market, especially during a cost of living crisis.

7. Try a neutral restyle

Declutter, of course — but do more than that. ‘If your interior is looking a little dated in style, then redecorate in line with current trends,’ says Alex Lyle, director of estate agency Antony Roberts, based in West London.

‘But try not to be too ‘out there’ as this may put off some potential buyers. Likewise, if carpets are looking a little tired, think about replacing them or switching to wooden flooring.’

8. Spruce up the garden

‘Assess how badly the garden suffered from the drought,’ says Josephine Ashby of John Bray Estates, an estate agent based in North Cornwall.

‘Something planted in the autumn should be thriving by spring. Outside space is important, so doing anything to spruce it up will be rewarded. 

Fresh gravel, a trellis to hide eyesores, dramatic pots and cleaned-up furniture with pretty cushions are all easy fixes.’

9. Remember the lights

‘Swap old halogen lights for LED fittings,’ says Emma Barkes of Stacks Property Search. ‘These use 80 per cent less energy to produce the same amount of light.

‘Make the change early so you can demonstrate lower winter bills and also to give you time to paint the ceilings, as the fittings will almost certainly be a different size.’

10. Finish old projects 

There’s no excuse for outstanding repairs if you have six months to deal with them, but remember that it can take longer than you think to get a tradesman in.

Maintenance firm HelpmeFix says it typically takes four weeks to get a bricklayer or roofer, and at least a week to get a plumber to do a routine boiler check.

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CBRE IM acquires two logistics assets in Madrid (ES)

Voice Of EU



CBRE Investment Management has acquired two new logistics assets in Madrid, Spain, owned by DWS, with a total gross lettable area of 67,859m².


The first asset, located in Meco, was completed in Q2 2020 and offers 51,969m² of gross lettable space with a LEED Silver rating. The second, in Torrejon, was completed in Q4 2019 and provides 15,890m² of gross lettable space with a LEED Gold rating. Both properties are already leased under triple net leases to leading tenants including a German automotive component manufacturer, a national kitchen equipment distributor and an international sustainable energy company. They both also have EPC ratings of A.


Both assets boast excellent locations with easy access to the A-2 and R-2 highways, and good connection with the M-50, Madrid’s outermost ring road. A driving distance of just 30 minutes to Madrid’s city centre means the assets are well positioned to accommodate, amongst others, tenants with a last-mile approach. The assets have been delivered to high technical and environmental specifications, and also benefit from the increased penetration of e-commerce in Spain and the lack of grade A logistics properties in the area.


Antonio Roncero, Head of Transactions for Iberia at CBRE Investment Management, said: “This acquisition was a rare opportunity to secure an income-producing grade A logistics portfolio through an off-market process. The Madrid logistics sector is attractive due to the potential growth of occupier demand versus an acute shortage of supply. Despite current economic headwinds, well located, high-quality and sustainable assets such as these are well placed to take advantage of ongoing rental growth in the logistics sector.”


Manuel Ibanez, Head of Real Estate Iberia at DWS, pointed out: “In 2017 at DWS we bet on the logistics sector and structured a forward purchase agreement with ICC, which culminated in the purchase of the two newly developed warehouses in 2019 and 2020. Following the leasing of both assets, we decided to divest, closing the circle of this deal, which will be profitable for our investors and is part of DWS’s value add strategy. We will continue working to find investment opportunities in key locations and strategic sectors such as logistics, residential and offices, strengthening our presence in Spain”.


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