Eldest child receives more help with buying a home

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by Kay Murchie

According to research from Abbey Mortgages, first-born children are more likely to receive financial help from their parents when purchasing their first home.

Abbey’s research revealed that first-born children are given a helping hand when it comes to buying a property more often than their siblings

The study showed that 17% of first-borns received financial help when purchasing a home, while this figure fell to 12% for second-born children and 9% for third-born siblings.

A spokesperson for Abbey said the figures depend on 2 things - more disposable income for parents to spend by the time that the younger children are ready to get onto the property ladder and get a mortgage, and increasing property prices which will also affect the amounts gifted by parents to their second and third offspring.

Nici Audhlam-Gardiner, of Abbey, said most parents like to think they are very fair when it comes to financial gifts to their children, but what’s fair in one circumstance may not be fair in another.

Over recent years, house prices growth has been so strong that even a gap of 2 or 3 years can mean a big financial difference when it comes to raising a deposit, even if the children choose to live in similar areas. Now that house price growth is slowing, we may find that parents’ gifts to siblings even out a bit concluded Nici Audhlam-Gardiner.