The rising cost of house prices in the UK has seen a generation of renters emerge, but the longing to own your own home is steadfast in the UK as a desire. The ability to save for a deposit amid rising levels of student debt and low wage inflation has meant it can be a huge struggle for first time buyers to get on the property ladder.
Many parents seek to assist in saving deposits and giving a helping hand. The government also seeks to help with the introduction of the LISA Lifetime ISA. There is a 25% bonus available for funds invested in a LISA which has a maximum limit of £4000 per annum. LISA’s are for the under 40’s and in order to benefit from the 25% tax relief bonus the funds must be used to purchase your first property (subject to criteria) or taken after 60 as a retirement income. For more information on these accounts get in touch.
If you are a parent or grandparent wishing to help children on to the property ladder review any funds that you may have to earmark for a deposit and ensure these are invested in the most appropriate tax wrapper.
Consider saving regularly whilst the children are young, maybe using their own Junior ISA allowance to provide them with funds at 18 that could kick start a deposit for a home.
If you are thinking about this area and would like advice get in touch!
Please email or call Alison (07496 689 309) or Adrian (07725 343 815) for a no obligation review of your circumstances.
Alison Davis and Adrian James are authorised and regulated through Mulberry Wealth Management Ltd. Mulberry Wealth Management Ltd is Authorised and Regulated by the Financial Conduct Authority (FCA). Our Financial Services Register number is 499351.