BoMaD to provide £5.7bn of property finance in 2018

Research from Legal & General and Cebr has revealed that 27% of homebuyers will receive financial help from friends or family, up from 25% in 2017.

In 2018, the BoMaD will help 316,600 people purchase a home, up from 298,300 in 2017.

This will result in the value of BoMaD-supported property purchases increasing to £81.7bn in 2018, a £4.2bn (5%) rise since 2016.

However, the average BoMaD contribution is set to drop from £21,600 in 2017 to £18,000 in 2018.

Total lending has also reduced from a high of £6.5bn in 2017 to £5.7bn in 2018.

Nigel Wilson, group chief executive at Legal & General, said that the BoMaD remained a prime mover in the UK housing market.

“However, it’s clear that households are feeling the pinch, as BoMaD contributions have reduced by an average of 17% from nearly £22,000 to a still very generous £18,000.

“The fact that in 2018, one in four housing transactions in the UK will be dependent on the BoMaD, while hard-pressed parents are finding it more difficult to provide the funds to help their family with deposits, will further exacerbate the UK’s housing crisis.

“We need more homes for the young, old and families alike.

“Legal & General is playing its part by announcing an initiative to deliver thousands of new affordable homes.”