How parents will take advantage of help to buy

Jonathan and Jennifer Davies are one of the first couples to take advantage of the money-saving scheme.

A new government scheme to support the housing market could have the unintended effect of boosting retirement finances – or event allowing parents and grandparents to stay in the family home.

Those used to acting as the “bank of mum and dad” will be able to keep more of their money in their own pockets when a state scheme that helps first-time and other buyers with their deposits is extended to the entire housing market next year.

The scheme can already help children get on the housing ladder with a minimal deposit if they are happy to buy a newly built home; from January it will be extended to older properties, too.

Before the state-backed scheme began, much larger deposits were needed to avoid paying high mortgage interest rates. This led to many young property-buyers asking parents or grandparents to give or lend them their deposit.

Giles Hannah, the head of VanHan, an estate agency, says: “The extension of the Help to Buy scheme to cover older properties as well as new build is likely to make it incredibly popular.”