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

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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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Voco Hotels debuts in Germany

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IHG Hotels & Resorts, acting in partnership with Hotelite Management, has opened its first voco hotel in Germany; voco Dusseldorf Seestern. Located in the Lorick district of the city, voco Dusseldorf Seestern is a great premium option for those visiting Dusseldorf for business or leisure. The hotel is within walking to distance to the banks of the Rhine river and a short drive from the airport and the city’s main shopping and business districts.

 

With 160 rooms, voco Dusseldorf Seestern, embodies the brand’s design ethos by creating a warm and inviting space with playful and bold decorative touches throughout. The use of bright, warm pops of yellow give voco its distinct identity. All the rooms include signature voco touches, such as high-quality bedding made from 100% recycled materials and eco-friendly large size bathroom amenities from Antipodes, an award-winning plant-based organic skincare company. Guests will also have access to a fully-equipped onsite fitness area including a sauna and steam room, perfect for those looking for a bit of me-time.

 

Offering all-day dinning, the hotel’s ‘Restaurant & Bar 38’ offers a great selection of meals all prepared with the finest organic ingredients. For breakfast, guests will find anything from a continental breakfast to a full English breakfast, as well as an assortment of healthy snacks to choose from. For lunch and dinner, Restaurant 38 offers an a la carte menu filled with local and international dishes. Come evening, Bar 38 is the perfect place to unwind from the day. Whether it be enjoying a cold drink whilst watching live sports on the screens or enjoying a cocktail on the terrace with friends, family, or work colleagues – there is a space for everyone.

 

For business travellers, voco Dusseldorf Seestern has five modern meeting rooms with a capacity of up to 140 participants – all fitted with the latest technology to enable hybrid meeting requests.

 

Oliver Walzer, Cluster General Manager of Hotelite, commented: “We are proud to be the first voco hotel in Germany and are looking forward to inviting our first guests to come and experience what the brand is all about – especially in Dusseldorf, a city where fashion, culture and commerce meet. Whether it be a short city break or a business trip, our onsite hosts will make sure that visitors will have a charming, unstuffy and playful experience that brings out the very best in them.” 

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Detached homes see average values up £60k during the pandemic says Halifax

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The pandemic property boom has been driven by a surge in demand for larger homes, new research has revealed.

The average value of a detached home in Britain has risen at almost twice the rate for flats, according to the data from Halifax and IHS Markit.

Buyers can expect to pay on average £425,177 for a detached property, which is an increase of £60,556 or 17 per cent since March 2020.

Buyers can expect to pay on average £425,177 for a detached property, which is an increase of £60,556 or 17 per cent since the March 2020

Buyers can expect to pay on average £425,177 for a detached property, which is an increase of £60,556 or 17 per cent since the March 2020

It compares to an increase of around 9 per cent for a typical flat during the same period, where values have risen on average £13,325 to an average of £158,992.

At the same time, the average price of a terrace property has risen 15 per cent or £27,715 to £213,798, while semi-detached also rose 15 per cent or £36,841 to £280,090.

HOUSE PRICES BY PROPERTY TYPE
All Houses All Buyers UK Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 15.40% 9.10% 14.90% 15.10% 16.60%
Price Change (since Mar ’20) £33,820 £13,325 £27,715 £36,841 £60,556
Average price Dec 2021 £276,091 £158,992 £213,798 £280,090 £425,177
Source: Halifax/IHS Markit        

The data also highlighted the widening of the gaps between each type of home, with flat owners expected to spend an extra £54,806 to upsize to a typical terrace house, compared to £40,416 in March 2020.

At the same time, those currently in a terrace would need a further £66,292 to own a semi-detached home, compared to £57,166 in March 2020.

Meanwhile, home movers hoping to switch from a semi-detached to a detached property need an additional £145,087, compared to £121,371 in March 2020.

REGIONAL HOUSE PRICE CHANGES BY TYPE
% Change (since Mar ’20) All Flat Terraced Semi-Detached Detached
East of England 13.00% 7.40% 14.20% 14.80% 14.30%
Northern Ireland 14.30% -2.40% 15.20% 16.70% 13.40%
South West 18.40% 10.90% 19.00% 19.50% 20.20%
London 6.40% 0.70% 6.80% 7.60% 12.40%
Scotland 12.10% 9.60% 14.20% 13.70% 16.30%
West Midlands 14.60% 7.10% 12.60% 15.50% 17.40%
East Midlands 15.50% 12.10% 16.50% 17.50% 19.00%
North West 18.20% 13.40% 18.80% 17.00% 21.90%
Wales 21.90% 11.70% 25.10% 21.20% 24.40%
North East 14.40% 14.30% 19.80% 11.80% 15.50%
South East 13.10% 7.40% 13.70% 13.80% 15.40%
Yorkshire 16.50% 4.30% 15.40% 17.00% 18.30%
Source:  Halifax/IHS Markit        

Wales and the North West saw the greatest increase in detached home prices, up 24.4 per cent and 21.9 per cent respectively.

The most expensive detached homes are in London, at an average £910,568. The 12.4 per cent increase is almost double the average of all property types in the capital.

Russell Galley, managing director, Halifax, said: ‘Record numbers of moves have been taking place throughout the pandemic, with the demand for detached homes now greater than for any other property type, meaning the competition for those looking to buy an often larger property is fierce.

‘As employers began to crystalise longer-term plans for home and hybrid working, buyers have been able to consider homes further afield as the need to commute falls away, with properties previously considered too remote now giving families extras like garden rooms and home offices.

This trend means Wales, with its beautiful countryside and lower relative property prices, saw the strongest growth in detached homes over the past two years.’

REGIONAL HOUSE PRICES BY PROPERTY TYPE DURING THE PANDEMIC
East of England All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 13.00% 7.40% 14.20% 14.80% 14.30%
Price Change (since Mar ’20) £36,767 £13,340 £34,669 £45,351 £63,141
Average Price Dec 2021 £319,447 £192,721 £279,087 £352,699 £505,379
Northern Ireland All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 14.30% -2.40% 15.20% 16.70% 13.40%
Price Change (since Mar ’20) £21,448 -£2,327 £14,027 £22,012 £25,600
Average Price Dec 2021 £170,946 £94,922 £106,105 £153,917 £217,226
South West All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 18.40% 10.90% 19.00% 19.50% 20.20%
Price Change (since Mar ’20) £44,773 £17,038 £38,716 £49,973 £76,380
Average Price Dec 2021 £287,774 £173,502 £242,285 £306,171 £454,133
London All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 6.40% 0.70% 6.80% 7.60% 12.40%
Price Change (since Mar ’20) £31,724 £2,657 £33,159 £44,891 £100,525
Average Price Dec 2021 £525,351 £371,744 £520,359 £635,422 £910,568
Scotland All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 12.10% 9.60% 14.20% 13.70% 16.30%
Price Change (since Mar ’20) £20,795 £9,789 £18,433 £23,357 £39,783
Average Price Dec 2021 £192,988 £112,075 £148,224 £193,975 £283,214
West Mids All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 14.60% 7.10% 12.60% 15.50% 17.40%
Price Change (since Mar ’20) £29,778 £8,625 £20,532 £33,265 £57,685
Average Price Dec 2021 £234,263 £129,851 £184,061 £247,881 £389,553
East Midlands All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 15.50% 12.10% 16.50% 17.50% 19.00%
Price Change (since Mar ’20) £30,275 £13,536 £24,346 £33,919 £57,186
Average Price Dec 2021 £225,106 £125,563 £171,686 £227,336 £358,441
North West All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 18.20% 13.40% 18.80% 17.00% 21.90%
Price Change (since Mar ’20) £32,591 £14,070 £24,426 £31,917 £63,229
Average Price Dec 2021 £211,954 £118,979 £154,308 £219,294 £351,887
Wales All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 21.90% 11.70% 25.10% 21.20% 24.40%
Price Change (since Mar ’20) £36,917 £11,570 £30,111 £34,639 £62,688
Average Price Dec 2021 £205,579 £110,318 £149,966 £197,768 £319,492
North East All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 14.40% 14.30% 19.80% 11.80% 15.50%
Price Change (since Mar ’20) £20,162 £11,527 £20,071 £17,666 £37,373
Average Price Dec 2021 £159,694 £92,214 £121,187 £166,876 £278,863
South East All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 13.10% 7.40% 13.70% 13.80% 15.40%
Price Change (since Mar ’20) £43,298 £15,502 £38,704 £49,203 £78,220
Average Price Dec 2021 £374,454 £223,610 £320,944 £404,648 £586,781
Yorkshire All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 16.50% 4.30% 15.40% 17.00% 18.30%
Price Change (since Mar ’20) £27,192 £4,708 £19,442 £29,624 £50,192
Average Price Dec 2021 £192,210 £114,535 £146,081 £203,805 £324,581
Source: Halifax/IHS Markit         

North London estate agent Jeremy Leaf said: ’Soaring demand for detached homes is not surprising as we are seeing buyers prepared to stretch themselves to purchase properties which they regard as for the longer term, rather than settling for smaller houses or flats. 

These buyers are often using money saved during lockdown by not going on holiday or other spending, to contribute towards their deposit. They are also taking advantage of continuing low interest rates even though the threat of higher repayments and inflation is looming.

‘Detached homes have long been the pinnacle in terms of what people aim for when buying property. They are popular because they offer flexibility, privacy, control and independence, which isn’t always the case with semi-detached or terraced properties where there is an element of shared space or boundaries, increasing the risk of conflict.

‘Price growth has been strongest in Wales because often affordability is greater in those markets in the first place. We have noticed the drift from the centre of towns and cities to the suburbs, country and coastal areas as people get more accustomed to hybrid working and not having to spend as much time in the centre. They are looking for higher-quality outside space and the ability to work comfortably from home.’

Separate research by Coutts found that demand has also been high for luxury leafy lodgings in the capital.

It said that sales for super prime homes worth £10million or more jumped from 56 in 2020 to 106 in 2021.

Peter Flavel, of Coutts, said: ‘For many investors these prime and super prime properties provide the opportunity to put funds into assets that offer the space they need as hybrid living continues to influence lifestyle choices.’

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Lisa Smith travelled to Turkey to study under Isis propagandist, court told

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Lisa Smith, a former Defence Forces member who denies membership of Islamic State (Isis), travelled to Turkey to become a student of a famous Islamic convert who wrote Isis propaganda, the Special Criminal Court has heard.

Michael O’Higgins SC, for Ms Smith, read out a message exchange in 2013 between his client and an American Islamic scholar John Georgelas, who was living in Egypt at the time.

Counsel said Mr Georgelas asked Ms Smith to travel to Egypt to study under him and said he would pay her to help his wife, Tania Joya, take care of their children.

Ms Smith replied: “I wouldn’t dream of accepting any money for looking after your children. If I can get the benefit of your knowledge as your student that would be more than enough payment for me.”

Mr Georgelas left Egypt with Ms Joya and arranged to meet Ms Smith in Turkey.

Ms Joya, giving evidence for a second day, told Mr O’Higgins that her husband was clever and manipulative and in 2013 was communicating with Ms Smith every day over the internet.

She said he was a respected scholar who could “overwhelm” people with his knowledge of scripture. She told Sean Gillane SC, for the prosecution, that Georgelas wrote for magazines Dabiq and Rumiyah that publish Isis propaganda

Ms Smith (39), from Dundalk, Co Louth, has pleaded not guilty to membership of an unlawful terrorist group, Islamic State, between October 28th, 2015 and December 1st, 2019. She has also pleaded not guilty to financing terrorism by sending €800 in assistance, via a Western Union money transfer, to a named man on May 6th, 2015.

Her trial is continuing in front of Mr Justice Tony Hunt, Judge Gerard Griffin and Judge Cormac Dunne at the three-judge, non-jury court.

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