We’re used to young owner-occupiers relying on the Bank of Mum and Dad for financial help - now it appears youthful buy to let investors are doing the same.
The number of investors borrowing from parents in their bid to beat the April 1 stamp duty deadline apparently increased by 5.0 per cent during the first quarter of the year according to new research from My Home Move, a conveyancing firm.
Analysing some 20,000 mover transactions, it said there was a 5.0 per cent spike in investment purchases using deposits donated or lent by parents - even though the overall number of purchases of all properties using such deposits actually dipped slightly.
“When we talk about the Bank of Mum and Dad, people usually think of first-time buyers who are struggling to afford their first home. However in this instance we’re not surprised that investors sought to utilise every avenue possible to secure their next property before the 1st April deadline. Asking for help through a gifted deposit, in effect helping to bring forward their purchase date, will have saved them thousands of pounds in additional stamp duty charges” according to My Home Move’s Doug Crawford.
The research also highlighted that investors with a gifted deposit favoured the regional hotspots of the East Midlands and West Midlands, both of which increased in popularity by 6.0 per cent and 12 per cent respectively, compared to the investor’s traditional choice of London and the South East, which decreased by 4.0 per cent year-on-year.