Cash rich property market: The Bank of Mum and Dad shows its first effects


The number of cash funded purchases of UK homes has hit a new post-recession high as the roles of Generation Rent’s Mums and Dads is growing.

The Intermediary Mortgage Lenders Association (IMLA) has revealed in a new research that the amount of cash going into the country’s property market has increased by 12% between 2015 and 2016 to £109bn.

Over the same period of time, the growth of mortgage lending only experienced an increase of 5%.

IMLA therefore showed that £418 out of every £1,000 spent on homes in Britain over the last year came in the form of cash.

This surge in cash buyers comes despite the Government’s attempt to intervene in the market and help first-time buyers onto the housing market, as well as increasing mortgage availability.

Peter Williams, executive director of IMLa, said:

“We are seeing a number of flexible product come to market to help make home-buying more accessible, for example using family guarantors, but there are limits to which flexible lending solutions can compensate for continuing structural flaws in the housing market with all the social implications that entails.”

It could take Generation Rent up to 59 years to make it onto the property ladder

And whilst Generation Rent continues its housing struggle, the country’s homeowners feel positive about the future.

A survey from property website Zoopla has revealed that 87% of respondents are confident that property prices will continue to increase in their area over the next six months to come. This shows an increase in confidence from late last year, when only 83% of homeowners expressed their expectations for a rise in value in the near future.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free

Cash rich property market: The Bank of Mum and Dad shows its first effects

Cash rich property market: The Bank of Mum and Dad shows its first effects


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.