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Bank of Mum & Dad gears up as housing market opens For business

Bank of Mum & Dad gears up as housing market opens For business

As lockdowns start to ease the housing market begins to re-open for business with release of pent-up demand and wealthy older households may be looking to downsize to release funds from their property.

Savills’ Clacy comments: “The apparent change in attitude has likely been influenced by a greater inclination to provide financial support to younger generations – primarily through the Bank of Mum and Dad – to help their kids get on the property ladder.” 

English Housing Market Opens For Business, But How Will It Change Post COVID-19?

One of the questions occupying the minds of those in the housing sector will be the extent to which the release of pent-up demand following the partial easing of the lockdown restrictions will repair the financial damage caused by the pandemic.

Earlier this month, before the changes to lockdown were announced, Knight Frank, the estate agent, predicted the number of home sales in the UK in 2020 would decline by 526,000, a fall of 38% on 2019 transaction levels. It said this decrease in activity would inevitably exacerbate problems across the economy.

Simon Gammon, its managing partner, said: “We estimate there will be a loss of £7.9 billion in DIY and renovation spend and £395 million on paying removals companies.

“This drop in economic activity will have a huge impact on the exchequer with the loss of £4.4 billion in stamp duty accompanied by a decline of at least £1.6 billion in VAT, and significant declines in personal and business tax revenue.”

Tim K. Dean, Credi Founder | Commentator & Expert on Family Lending, Bank of Mum & Dad and Neo-Credit Scores is available for media interviews and appearances. More…

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