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Half of all first-time buyers need property deposit cash from parents

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Half of all first-time buyers will only get on the property ladder in the next three years due to cash from their parents, according to figures from a leading estate agent.

The true extent of the financial struggles faced by first-time buyers are laid bare by the Savills research.

It found that 47 per cent of all first home purchasers will not be making the financial move alone. It equates to almost half a million first-time buyers, at 470,000.

Half a million first-time buyers will receive financial assistance with a deposit in the next three years, according to Savills research (stock image)

Half a million first-time buyers will receive financial assistance with a deposit in the next three years, according to Savills research (stock image)

In total, Savills calculated that it translates to £25billion which will be gifted and loaned by the Bank of Mum and Dad between 2022 and 2024.

It is based on mortgage data provided by the mortgage trade body UK Finance, which uses sold prices.

Number of first-time buyers receiving family assistance and amount of assitance given to get on the housing ladder (* forecasts)

Number of first-time buyers receiving family assistance and amount of assitance given to get on the housing ladder (* forecasts)

It comes amid rising annual house prices, with Nationwide revealing this week that values have increased 11 per cent in the year to July.

And the 0.1 per cent monthly increase means prices have risen for 12 consecutive months in a row, keeping annual price growth in double digits for the ninth month in a row.

Banking giant Halifax said that house prices had dipped slightly in the same month, but the average home still costs £293,221 and annual property inflation is at 11.8 per cent.

The rapid rise in prices means that first-time buyers are struggling even more than previously to keep their savings for a deposit increasing at the same pace as property values, Savills said.

Meanwhile, after yesterday’s increase the Bank of England base rate has risen from 0.1 per cent last December to 1.75 per cent now, pushing mortgage rates up substantially.

This is Money’s mortgage comparison calculator can potential borrowers work out how much their monthly payments would be and show the loans they could potentially apply for, based on a home’s value and mortgage size.    

First-time buyers are struggling to save for a deposit as house prices continue to rise

First-time buyers are struggling to save for a deposit as house prices continue to rise

Has Bank of Mum & Dad lending peaked?

Savills went on to highlight how a total of 198,000 first-time buyers had financial help to get their mortgage in 2021, around 49 per cent of all mortgaged first-time buyers, up from 131,000 in 2020 and 136,000 in 2019.

The Bank of Mum and Dad contributed a total of £10.7billion towards the purchase of these homes – more than double 2019, or 115 per cent higher – as a result of a more stringent mortgage market since the start of the pandemic, which particularly affected lending to those with a smaller deposit.

Frances McDonald, of Savills, said: ‘Help from the Bank of Mum and Dad peaked last year as lenders exercised rate increases across high loan-to-value loans.

‘This meant more buyers looking to take their first step onto the housing ladder needed to take advantage of any family support to try and secure a deal at a lower rate.

‘However, as ratios normalise over the course of this year, we can expect family assistance to fall back to levels seen prior to 2021 – at around £8.4billion.

‘We are also anticipating that first-time buyer transactions will fall back in 2022, in line with overall transactions, and so the proportion who are receiving help from family – at 43 per cent – will remain above pre-pandemic levels of 39 per cent in 2019 and 41 per cent in 2018.’

Savills said the property the market will be' increasingly confined to the highest earners and those who have received significant support'

Savills said the property the market will be’ increasingly confined to the highest earners and those who have received significant support’

Savills explained that Help to Buy – which supported 40,000 loans to first-time buyers and provided £2.9bn of financial assistance – brought the total support received by first-time buyers to more than £13.6billion in 2021.

However, this will end in March 2023, removing support that tens of thousands of homeowners have relied on.

Mrs McDonald added: ‘Despite strong levels of activity and price growth across the board, lenders are continuing to favour less risky, lower loan to value mortgage lending, which means it remains difficult for first-time buyers to get on the ladder.

‘Those who have the option to turn to family members for help and are in secure employment will find it much easier to get onto the housing ladder.

‘This means that the market will be increasingly confined to the highest earners and those who have received significant support.’

‘Despite higher interest rates, the main barrier to home ownership is still buyers’ ability to save for a deposit.

‘This is particularly true with the rising cost of living and so the role of the bank of Mum and Dad will remain a key avenue of support to those able to access it. This will be all the more vital from March 2023 when Help to Buy closes, with more first time buyers looking to plug a hole in their deposit gap.’

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Bluewater grows its entertainment offer (GB)

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Landsec has announced the opening of a third ‘UK first’ attraction at Bluewater, Kent as the destination expands its partnership with Hangloose Adventures. Skydive, a free-fall experience not found anywhere else in Europe, and the UK’s only outdoor skydive machine has opened at the centre. It follows on from Europe’s biggest purpose-built giant swing, standing at 46-metre tall, which opened at Bluewater earlier this month.  

 

The announcement builds on a successful first year for Hangloose’s initial attraction Skywire, the longest zip wire in England, which has welcomed 30,000 guests since launching at Bluewater last June. Landsec will continue to work with Hangloose to expand its offering, with up to five more experiences set to open at the centre by 2024: a bungee tower, giant slide, clip and climb, waterdrop boulding wall, and Via Ferrata, a route-marked climb using metal rails and rungs embedded in Bluewater’s cliff walls.

 

Mark Warne, Brand Account Director F&B and Leisure at Landsec commented: “Delivering new experiences which are unique to Bluewater is central to our overall offer for guests. Hangloose’s innovative concept raises the bar when it comes to leisure attractions and draws guests from across the UK to Kent. By partnering with Hangloose to grow their business and create shared value, we’ll be able to give guests even more exciting experiences every time they visit.”

 

Brian Phelps, MD of Hangloose Adventure, said: “Since the beginning, we’ve worked closely with Landsec to grow our leisure concept and drive performance, putting us in a unique position where we’re able to expand our offer after only a year. We’ve enjoyed great success at Bluewater so far and are already thinking about how we can provide even bigger and better experiences in the future.”

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Author with immaculate house offers ten tips for a clean home

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Is this the secret to NEVER having to clean? Houseproud author claims she saves hours by sticking to a ten-step mantra – including banning chairs in bedrooms, wiping as you cook and only ironing shirts and dresses

  • UK writer Natali Juste Simmonds says she’s cracked keeping a home clean, by sticking to a few simple ground rules – and making sure family members comply
  • She shared top ten tips for keeping a home spotless with her 20,000 followers
  • Among them are ditching a toilet brush in the bathroom, not having a chair in the bedroom and cleaning  the kitchen while you cook

A houseproud author has revealed her ten essential tips for keeping a house spotless – saying simple ground rules for family members and cleaning as you go means never wasting time on dull chores. 

Writer Natali Juste Simmonds, who was born in the UK but now lives in the Netherlands, penned her top ways to keep on top of cleaning on Twitter, saying she has time to focus on her writing because she follows her own advice about dodging ‘thankless’ cleaning tasks. 

The author of a series of paranormal romance novels told her 20,000 followers on Twitter: ‘I know so many people who spend hours cleaning up after their family every day, but I refuse to. 

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UK writer Natali Juste Simmonds says she's cracked keeping a home clean, by sticking to a few simple ground rules - and making sure family members comply

UK writer Natali Juste Simmonds says she’s cracked keeping a home clean, by sticking to a few simple ground rules – and making sure family members comply

‘It’s boring and thankless. I prefer to write. Yet my house is spotless. Here are 10 ways to keep on top of s*** so you don’t have to clean for hours.’ 

Sharing her ‘tough love’ mantra, she said that the key to keeping a home clean is making sure every family member is engaged, saying learning how to tidy is a lifeskill that everyone needs – and no-one should get away with not doing it. 

Natali wrote: ‘Train everyone in the house to do the following (cats are the exception). After a while these habits will become routine, but you MUST stick to them and make sure no one is let off the hook.’ 

Among the tips are filling a bag with things that are in the wrong place at the end of every day and placing them back where they belong. 

Tidy home, tidy mind: The Netherlands-based writer shared her top ten tips for keeping a home spotless with her 20,000 followers on Twitter - saying that making sure everyone in the house pulls their weight is key (Pictured: An office area in Simmonds' home)

Tidy home, tidy mind: The Netherlands-based writer shared her top ten tips for keeping a home spotless with her 20,000 followers on Twitter – saying that making sure everyone in the house pulls their weight is key (Pictured: An office area in Simmonds’ home)

The writer also claims having a toilet brush doesn’t help keep a loo clean and dousing it with bleach instead is a more reliable way to ensure it’s sparkling. 

And getting used to wiping down mirrors after using a sink also helps, she claims, writing: ‘Keep a dry cloth next to the bathroom sink. Every time someone uses the taps or brushes their teeth, wipe down the counter and mirror. Takes literally 2 seconds. No cleaning toothpaste stains off counters.’

Teaching kids to pull their weight around the house is key to success, and equality reigns supreme in the Simmonds house. 

Among her top tips are ditching a toilet brush in the bathroom - using just bleach instead; not having a chair in the bedroom - to prevent people leaving clothes on them - and cleaning the kitchen while you cook (Pictured: Simmonds' very tidy office)

Among her top tips are ditching a toilet brush in the bathroom – using just bleach instead; not having a chair in the bedroom – to prevent people leaving clothes on them – and cleaning the kitchen while you cook (Pictured: Simmonds’ very tidy office)

‘If one kid lays the table, the other clears. If one hangs out the washing, the other collects. I don’t say “I need help with dinner” I say “who will chop the veg and who will wash up?” Its called a presumed close. I have no option, why should others in my house?’

The author, who has written books including the Indigo Chronicles trilogy and the Blood Web series, admits that having a cleaner is still useful…because they can help keep on top of areas where grime quickly builds, including fridges and ovens – but she suggests ditching a takeaway a week to cover the cost. 

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DIA Group closes 25 Minipreco stores in Portugal

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DIA Group has closed 25 Minipreco stores in Portugal, resulting in the loss of approximately 159 jobs. The retailer said the closures are the result of ‘the effort to adapt, modernise and balance the operations of DIA Portugal, with the aim of better preparing the company for current and future challenges arising from the current economic situation in the country,’ according to media reports. In the last two years, the multinational company operating in Spain, Portugal, Brazil, and Argentina, accumulated losses of over €620m.

 

In Portugal, net sales reached €283.1m in the first half, 4.5% below the €296.3m generated in the same period last year, due to the reduction of stores and mobility restrictions. DIA Group confirmed its intention to continue to invest in Portugal. The company hopes to adjust its operation to the current reality in order to ensure the future success of the company.

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