With the average deposit needed for a UK first-time buyer being £20,102, will your children be able to afford a 10% deposit on their first home?
Many parents are now supporting their children onto the property ladder by providing financial help for a housing deposit. In 2016 this would mean that parents are therefore needing to provide on average £20,102 towards a deposit, but if your child is still young and you are already saving or intend to save in the future are you saving enough for your child?
One way to ensure a healthy deposit for your children would be to put money aside each month. A Junior ISA would be a great way to achieve this as they are tax free and after the initial deposit you can place as little as £10 a month.
If your child is still young and you would like to make sure that you’ve saved enough for a ten percent deposit on their first home, do take into account that house prices will grow over the next 15 – 20 years, therefore a larger deposit would be required.
A great resource to see what the average house price is can be found here.
Take a look at the infographic below produced by Shepherds Friendly to find out further information on their recent survey on how to work out if you’re saving enough for your child’s future.
