Why first-time buyer deposits are getting harder to verify
Summary
The article argues that first-time buyer deposits are becoming harder to verify because more buyers are using multiple accounts and gifted contributions to assemble funds. It says this is increasing source-of-funds checks and friction for conveyancers, particularly where giftors must also be verified to the same regulatory standard.
Why it matters
Residential property surveyors should be aware of the wider transaction friction affecting first-time buyer purchases, as delays in verification can slow completions and affect chain stability. The piece also highlights the growing compliance burden across the homebuying process, which can influence transaction timelines and client expectations.
Key points
- Nearly half of first-time buyers now use three or more accounts for deposits.
- Over a quarter rely on at least one gifted contribution, averaging £50k.
- Giftors require separate identity and source-of-funds checks, adding complexity.
- Earlier verification and clearer communication are presented as ways to reduce delays.
- Digital banking and investment activity are making source-of-funds evidence more fragmented.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
