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The bank of mum and dad – 52 per cent of first-time buyers rely on gifted deposits

The bank of mum and dad – 52 per cent of first-time buyers rely on gifted deposits

Rising house prices and the growing cost of living make getting on the property ladder and saving for a deposit that much harder for first-time buyers.

Savills’ 2025 report found that around 52 per cent of first-time buyers received a helping hand from the ‘bank of mum and dad’ or other family members to buy their property.

This financial assistance is usually given as a gifted deposit.

Our Supervising Department Director, Erin Cronin, explains the requirements of a gifted deposit and how to prevent them creating delays in your purchase.

What is a gifted deposit?

A gifted property is the money given to a property buyer to help fund all or part of their deposit.

This is not to be confused with a loan, as the money is provided with no expectation of repayment.

The person giving the money also does not receive a legal interest in the property.

The average cost of a home for a first-time buyer in the UK is around £229,000 at the moment, according to Zoopla.

With house prices like these, buyers are putting down deposits of roughly £30,000 or more and family support is becoming increasingly common in funding this.

What are the requirements for a gifted deposit?

The most important requirement is that the deposit must genuinely be a gift.

Mortgage lenders need reassurance that the buyer will not have additional debts to repay alongside their mortgage.

If there is any expectation that the money will be paid back in the future, the lender may treat the arrangement as a loan instead.

This could affect your affordability checks and potentially impact the mortgage application.

Most lenders will only accept gifted deposits from close relatives, although some may allow gifts from partners or extended family members, depending on their criteria.

The donor also cannot usually have ownership rights over the property unless this has been formally agreed with the lender.

Lender requirements can vary and buyers should always disclose gifted deposits at the earliest opportunity.

How do you prove a gifted deposit is legitimate?

Mortgage lenders and solicitors are legally required to carry out checks on gifted deposits to comply with anti-money laundering regulations.

The donor will usually need to provide identification documents, proof of address and bank statements showing where the funds came from.

Lenders will also usually ask for a gifted deposit letter confirming that the money is an unconditional gift and does not need to be repaid.

The letters usually confirm:

  • The amount being gifted.
  • The donor’s relationship to the buyer.
  • That the funds are not a loan.
  • That the donor will not have a legal interest in the property.

Get advice on gifted deposits

With so many buyers relying on gifted deposits, proper legal guidance is key to understanding the implications they have for everyone involved.

If you’re looking to buy a property with the help of family, or you are the family member planning to help a buyer get onto the property ladder, our residential property team can guide you through the correct procedures and ensure everything is properly protected.

Get in touch to speak to our team.

Can you make a Lasting Power of Attorney after a dementia diagnosis?

Can you make a Lasting Power of Attorney after a dementia diagnosis?

One in 14 people aged over 65 has dementia and this rises to one in six for people aged over 80, according to the Alzheimer’s Society.

Receiving a dementia diagnosis can feel frightening and questions can start to arise about your future, such as your care and finances.

While it can be difficult to think about legal planning during such an emotional time, putting the right protections in place and making a Lasting Power of Attorney (LPA) can make sure your wishes are followed through with.

The Department Director of our Wills, trusts and probate team, Helen Jago, explains what an LPA is and whether you can make one after receiving a dementia diagnosis.

What is a Lasting Power of Attorney?

An LPA is often viewed as a legal document that allows someone you trust to make decisions on your behalf if you are no longer able to.

Many people presume that of a Will is the most important legal document they will ever make before they pass. However, an LPA protects you during your lifetime if illness or dementia affects your ability to make decisions independently.

There are two types of LPA in England and Wales that you can choose between.

A Property and Financial Affairs LPA relates to all financial decisions and responsibilities. For example, managing your bank account or selling your home, where you may need the proceeds to cover the cost of your care.

A Health and Welfare LPA covers all medical and daily living decisions. For example, if you end up in a situation where you need life-sustaining treatment, such as being placed on a ventilator, your attorney will have to choose whether or not to authorise it.

Without these documents, your loved ones could face lengthy and expensive court proceedings trying to access your money or make decisions about medical treatment on your behalf.

Determining mental capacity

Mental capacity is a person’s ability to understand, weigh up and communicate decisions at the time when they need to be made.

If you have received a dementia diagnosis, it does not automatically mean you lack mental capacity.

Many people in the early stages of dementia are still perfectly capable of understanding important decisions and signing legal documents, including an LPA.

Dementia is a progressive condition, so many people eventually lose the ability to make certain decisions, but they won’t necessarily decline overnight.

Someone may have clearer, more lucid days where they are fully able to express their wishes and understand the consequences of decisions being made.

Can you make an LPA after losing mental capacity?

Unfortunately, there comes a point for some people living with dementia where they are no longer able to understand or make certain decisions for themselves.

It does then become too late to create an LPA once mental capacity has been lost.

Without an LPA, no one automatically has the legal authority to deal with your finances or personal matters. Not even your next of kin.

To obtain this authority, an application must be made to the Court of Protection to appoint a Deputy.

A medical professional must also complete a formal assessment confirming that you no longer have the mental capacity to manage your affairs yourself.

If the application is approved, the chosen Deputy is given the legal power to make decisions on your behalf.

How can we support your LPA?

We know that conversations about the future are uncomfortable, especially when you are dealing with a progressive condition and the matter can sometimes be time sensitive.

We encourage everyone, particularly those with a dementia diagnosis, to make an LPA as early as possible.

This allows for their needs and wishes to be met by someone they trust should they become unable to decide for themselves.

Our team are here to provide you with the best LPA support and help you start the process of putting your affairs in order.

For further support or advice on LPAs, contact our Wills, trust and probate team.

Why “no win, no fee” may not mean the best result for injury claimants

Why “no win, no fee” may not mean the best result for injury claimants

A growing number of personal injury claimants could be losing thousands of pounds in compensation by opting for “no win, no fee” arrangements, according to new case analysis from Palmers Solicitors.

Conditional Fee Agreements (CFAs) are widely used across the UK and are often presented as the simplest option.

However, success fees of up to 25 per cent are typically deducted from compensation when a claim succeeds.

Jennifer Hitchen, Solicitor at Palmers says that while CFAs have their place, they are not always the most cost-effective choice, particularly in more clear-cut cases.

“If liability is clear from the outset, for example, a rear-end road traffic accident or an accident at work where fault is admitted early on, the risk of the claim failing is lower.

“In those circumstances, giving up a quarter of your compensation can be hard to justify. You are effectively paying a premium for a risk that may not really be there.”

Jennifer points out that “no win, no fee” providers operate on a commercial model and are incredibly selective about the cases they take on.

“Firms offering CFAs are unlikely to take a gamble on a case. Many of them make a point of highlighting that they will take on the case if they feel they are at least 51 per cent likely to win.

“If your case is accepted on that basis, is it not worth asking yourself whether it might also be strong enough to pursue without giving away a percentage of your damages?”

Palmers’ recent case study involved a claimant who chose to fund her case privately.

With liability resolved and costs recovered from the defendant, she retained the full value of her compensation, leaving her more than £9,000 better off than she would likely have been under a CFA.

However, Jennifer is careful to stress that outcomes depend on the details of each case.

Factors such as disputed liability or the complexity of the claim can affect legal costs, meaning privately funded claims are not always the more cost-effective route.

“Where liability is denied, or there are arguments around medical evidence or long-term prognosis, costs can rise quickly. In those cases, a CFA can offer some comfort for the claimant because they are financially protected if the claim doesn’t succeed.”

According to Jennifer, there are other benefits to privately funding your personal injury claim as opposed to going with a CFA.

“We tend to deal with a smaller number of cases at any one time, which means clients know who they’re speaking to. They can pick up the phone and speak to someone who knows the details of their case without being passed between teams or call centres.

“When someone is recovering from an injury, that continuity can make the process far less stressful.”

Jennifer believes there is a gap in public understanding about how funding choices affect outcomes.

“A lot of people don’t realise they have a choice. They see the adverts, hear ‘no win, no fee’, and assume that’s the only sensible route.

“There are situations where paying privately can leave you with a good chunk more in your pocket at the end of the case if you are willing to take that risk.”

Jennifer is encouraging anyone considering a claim to seek early advice and weigh up the strength of their case before committing to any agreement.

“For some people, a CFA will still be the right choice for their situation, but it shouldn’t be the default without a second thought. It’s a conversation worth having at the start so you understand the risks and potential costs involved in your matter and the odds of success.

“Once you’ve signed up to a success fee, that deduction is locked in.”

 

 

Can I sell my leasehold property if there is an existing problem or dispute?

Can I sell my leasehold property if there is an existing problem or dispute?

The time might have come for you to get your ducks in a row and put your leasehold property on the market, but there might be something holding you back.

Having an ongoing issue or dispute looming in the background when you want to sell your leasehold property might leave you worried.

It could be that you’re concerned about how buyers will react to this or if it will delay or derail your sale entirely.

Our Supervising Department Director of Residential Property, Erin Cronin, explains whether you can still sell your property with an existing issue and how you should approach this situation.

What do I need to disclose when selling?

Any prospective buyer will expect transparency and full disclosure of important details when selling your leasehold property.

This can include:

  • Details of the remaining length of the lease
  • The current ground rent and service charges
  • Any planned or anticipated work by the freeholder or managing agent
  • Any restrictions affecting the property’s use
  • Any latent defects through the TA6 Property Information Form and LPE1 form

Your potential buyer is responsible for carrying out their own due diligence checks, but you also have a duty not to withhold information that could affect their decision.

Failing to disclose any relevant issues or providing incomplete or misleading answers could put you at risk of claims for misrepresentation.

Do disputes need to be resolved before selling?

Resolving a dispute before putting the property on the market is always the preferred solution.

However, this is sometimes easier said than done and there are some delays that are outside of your control.

For example, lease extension applications can take time and landlords may not always be quick to respond.

This is where a legal adviser’s support becomes essential. They will help you document the necessary steps taken to resolve the issue and allow the buyer to proceed with the process after completion.

You might also look to negotiate a financial arrangement, such as retaining a portion of the purchase price, to help manage the potential risks your issue or dispute could bring.

What about service charges or withholding payments?

Disputes over service charges or a lack of maintenance are amongst the most common issues we see leaseholders face.

While it may be tempting to withhold payments as leverage, doing so can put you in breach of your lease and raise concerns for buyers.

Most buyers will also insist that service charge and ground rent accounts are fully up to date before completion.

Additionally, any outstanding arrears can undermine buyer confidence and delay mortgage approvals.

There are limited circumstances where withholding payment can be justified and this should only be done with clear legal advice and if a sale is planned.

Why do I need a landlord’s consent for alterations?

Many leases require the landlord’s consent for alterations or for selling the property.

While landlords cannot usually withhold consent without reason, there is still a risk of delay.

Also, if alterations were carried out without consent, buyers would expect this to be addressed and presented with a solution.

This may include retrospective consent, indemnity insurance, removing the work or adjusting the sale price to reflect the potential risks.

How can we help with your housing issues or disputes?

Selling a leasehold property with complications does require careful handling and we are here to support your disclosure requirements.

We will liaise with landlords and managing agents and help you manage any potential leasehold disputes.

Our expert team can help you protect yourself from future claims and put you in the best position to achieve a successful sale.

For further support, get in touch with our residential property team.

How can you keep on top of your sponsor licence compliance?

How can you keep on top of your sponsor licence compliance?

The Home Office reported that nearly 2,000 visa sponsor licences were revoked between July 2024 and June 2025 and scrutiny has only become stricter since then.

From the moment an overseas worker’s visa is approved and your licence is granted, you are expected to maintain detailed and accurate records and report any changes to your worker’s role, salary, if they leave the company or if your business’s ownership changes.

You must also ensure that your HR systems are capable of monitoring international employees, the role you are offering is genuine, paid correctly and follows UK Visas and Immigration (UKVI) rules.

All this can feel like a lot to balance and you might be feeling overwhelmed about where to start and what your responsibilities are with a sponsor licence.

Our Immigration Solicitor, Pooja Kaur, has clearly broken down what employers need to do to remain compliant.

When will the Home Office conduct a compliance visit?

A compliance visit is not always announced and can occur before the licence is granted or during the licence period.

These visits can also happen if any compliance concerns arise, such as mismatches between payroll and sponsorship duties and unusual hiring patterns.

The Home Office will cross-check information with HMRC and Companies House, so any inconsistencies can come to the surface before you even realise there is an issue.

Your systems will be put to the test and you need to ask yourself if you are producing up-to-date records and if your employee files are clear and consistent.

When can a compliance risk turn into a licence revocation?

Non-compliance does not always lead to immediate licence revocation, but it can escalate quickly.

A suspension is often the first step and this halts your ability to sponsor new workers and removes you from the public register while investigations take place.

Revocation, however, is where the real damage begins.

Your sponsorship will end overnight and your employee can have just 60 days to secure a new role or leave the UK entirely.

This fallout can be damaging for your business and result in your projects stalling and reputational damage rippling through your client base.

In some cases, financial penalties may follow and reapplying for a licence may not even be an immediate option.

What are the costs of getting it wrong?

We know that not every compliance failure is intentional and they can stem from simple mistakes like missed updates or incomplete records.

Sadly, a genuine human error does not soften the outcome and you need to keep on top of your duties and your compliance checklist.

The risks of getting it wrong could be a civil penalty for illegal working, which can reach up to £60,000 per employee, key personnel being scrutinised and business operations can be disrupted.

How can you protect your sponsor licence?

We find that the most resilient sponsors are the ones who are prepared for potential scrutiny and have consistent reporting and auditable systems in place.

Those who conduct regular internal reviews are better positioned to catch small issues before they grow.

Also, you should ensure that those responsible for managing compliance, such as your key personnel, are clear on their duties and the potential risks to look out for.

Whether you are at the start of your application or have held a licence for years, having the right support can help you effectively manage your compliance.

Our Immigration Law team can guide you through your sponsor duties, the right steps for the application process, key personnel’s duties and support you during Home Office inspections.

If you still feel in the dark about how to start your application, our guide to the sponsor application for employers clearly explains the process, so you do not miss any important steps.

For more tailored advice or support for your sponsor licence, get in touch today.

Are you protecting your employees’ religious beliefs and practices in the workplace?

Are you protecting your employees’ religious beliefs and practices in the workplace?

Millions of workers across the UK celebrated the end of Ramadan last month and this might have left you wondering about whether you are doing enough to protect religious beliefs in the workplace.

Every worker should feel safe and protected at work.

Under the Equality Act 2010, religion or belief is a protected characteristic, so employers also have a responsibility under the Act to safeguard their employees from discrimination.

Our Head of Employment, Lisa Judd, goes into detail on how you can effectively manage religion and religious discrimination in your workplace.

How does the law define religious discrimination?

As defined in Section 10 of the Act:

  • “Religion” means any religion, and a reference to religion includes a reference to a lack of religion.
  • “Belief” means any religious or philosophical belief and a reference to belief includes a reference to a lack of belief.

To qualify for protection:

  • The belief must be genuinely held.
  • It must be a belief, not an opinion or viewpoint based on the present state of information available (see Belief is more than an opinion).
  • It must be a belief as to a weighty and substantial aspect of human life and behaviour.
  • It must attain a certain level of cogency, seriousness, cohesion and importance.
  • It must be worthy of respect in a democratic society, not be incompatible with human dignity and not conflict with the fundamental rights of others.

Whilst this article focuses on religious discrimination, all qualifying beliefs are treated equally, be they philosophical or religious

The Equality Act recognises four main types of discrimination around religion and belief:-

Direct discrimination is when someone is treated less favourably than a comparator of a different religion (or no religion) “because of their religion or belief”, for example, overlooking someone for promotion due to their religion.

On the other hand, indirect discrimination is when you apply a policy or have a practice which appears neutral, but that actually subjects those of a particular religion to particular disadvantage without objective justification (i.e. being able to show that the policy or practice was a proportionate means of achieving a legitimate aim).

Employers also have a responsibility to monitor any harassment related to religion that has the purpose or effect of violating an individual’s dignity or creating a hostile work environment.

Lastly, there is victimisation, which is when someone is subject to unfavourable treatment because they have raised or supported a complaint about religious discrimination.

Workers are protected from discrimination because they are associated with someone with a particular religion or belief or because they are perceived to be of a certain religion or to hold certain beliefs.

Clash of rights

Article 9(1) of the European Convention on Human Rights gives an absolute right to hold a religion or belief. That said, the manifestation of that religion or belief may be restricted under Article 9(2) in accordance with the law, if it is necessary in a democratic society, in the interests of public safety, for the protection of public order, health or morals, or for the protection of the rights and freedoms of others.

Difficult issues can arise when balancing this right against other convention rights e.g. the right to freedom of expression, or the right to respect for private and family life.

Similarly, there is scope for conflict between the protected characteristics of religion or belief and sexual orientation and gender reassignment.

Employers can face the sometimes very difficult task of trying to balance competing rights. Here, case law suggests that while employers should not discriminate against workers because they hold certain religious views or beliefs, this does not necessarily give those workers carte blanche to manifest or express those beliefs regardless of the impact on others.

A worker complaining of discrimination on the grounds of their religion or belief may see their claim fail for “inappropriate manifestation” of their religion when tested against the legitimate interests referenced in Article (2).

What is your duty as an employer in preventing religious discrimination?

We understand that it can feel intimidating to know how to manage religious requests fairly and lawfully. However, this does not mean that you should ignore your responsibilities as an employer.

You should be actively avoiding discrimination in your recruitment and employment process, all the way to your dismissal procedures.

You must also make sure you are regularly reviewing workplace rules to spot potential indirect discrimination risks, implementing strict policies to prevent harassment and responding promptly to complaints.

Religious requests should be managed consistently and you must consider health and safety implications carefully before you restrict any religious practices.

There is also the safety element of protecting information around an employee’s religion, as this is a special category of data under the UK GDPR and the Data Protection Act 2018.

It is your duty to try and find a workable balance between legitimate business needs and reasonable accommodation of religious practices.

Below, we have gone into detail on some of the top requests that we see occur around religion.

  1. Dress and appearance

You may see some requests from employees to wear religious dress or symbols, such as a hijab, turban, kippah or crucifix. Employers should consider whether any potentially indirectly discriminatory dress code requirements can be objectively justified, for example, because of safety or hygiene reasons, and if not whether an exception might be made.

  1. Prayer breaks and quiet spaces

If your employee’s religion requires prayer during the working day, they may look to request shorter breaks for prayer or access to a quiet room to undertake their religious observance.

Even minor adjustments to existing break times or creating a shared quiet space can sometimes accommodate these requests without disrupting operations.

If a quiet place is available and allowing its use for prayer does not cause problems for other employees or the business, employers with sufficient resources may be discriminating because of religion or belief by refusing such a request. On the other hand, employers should be careful to avoid creating a disadvantage for workers who do not need a quiet room (for example, by converting the only rest room), as this might amount to indirect religion or belief discrimination. It is therefore good practice to consult with all workers before designating a room for prayer and contemplation and to discuss policies for using it. Employers should also consider providing separate storage facilities for ceremonial objects.

  1. Working hours and religious holidays

Some religious periods can affect employees’ availability and you should have early processes and practices in place to prepare for these.

If a worker requests annual leave for a religious occasion, employers should seek to accommodate the request, provided that the worker has sufficient holiday entitlement and it is reasonable for them to be absent from work during the period requested.

You might want to start encouraging early notice of requests or shift swaps where feasible.

If you have annual shutdowns, you might wish to consider whether requiring all workers to take leave at set times disadvantages individuals whose religious beliefs mean they need annual leave at other times when weighing the needs of the business (which could be a legitimate aim) and the needs of their workers when deciding whether having a shutdown is a proportionate means of achieving a legitimate aim.

No matter your approach, you need to apply an objective criterion when you approve or refuse leave.

  1. Fasting and social events

We know how common it is for workplace culture to revolve around food and drink.

Whether it is setting up a staff lunch or your annual holiday party, it genuinely may not pass your mind to consider that some of your workers may be fasting or not want an event that centres around alcohol.

Employers should make sure they offer inclusive catering options during these events and stay mindful of fasting periods, such as Ramadan. Employers might consider temporary adjustments to working times or duties to support workers during periods of fasting.

Providing all staff with some general information about what fasting entails or explaining why certain staff might be allowed to leave early and if any time missed is being made up elsewhere, can help avoid other workers feeling any accommodations made are unfair.

A little forethought can help prevent some workers from feeling excluded and allow everyone to have fun.

  1. Proselytising

Some individuals see it as their religious duty to promote and spread their faith. Where an employer’s policy prevents them from doing so in the workplace, this arguably places persons holding these religious beliefs at a disadvantage and could be indirectly discriminatory. However, depending on the circumstances, the employer’s policy might be objectively justified.

  1. Bereavement & compassionate leave

Certain religions have distinct bereavement requirements which may mean that employees in mourning will wish to take an extended period of time off work. The issue may raise questions of indirect discrimination.

  1. Recruitment and training

Save for certain roles with occupational requirement exceptions, employers need to be sure that discrimination based on religion is prevented from the outset in their recruitment and promotion practices.

Take a step back and assess your job adverts and interview process first. Do they focus on skills and requirements? Are you using objective questions for potential candidates?

You should then look to review your employment contracts and workplace policies, including any anti-harassment policy, dress standards, leave procedures and grievance processes to ensure they address equality on the grounds of religion or belief appropriately.

Taking that extra step of getting additional training or legal support can help you and your team manage discrimination risks more effectively and know how to assess requests in a way which reduces the risk of discrimination complaints / claims.

How can employers handle religious requests?

Once an employee makes a request to change their employment conditions in relation to their religion, you need to assess its impact.

You should look at the bigger picture and consider how it will affect your operations and, if the change cannot be easily agreed, if there are any alternative solutions you can offer.

If you do choose to deny the request, you need to clearly document your reasoning and provide clear explanations as to why.

Your approach to any religious request should be consistent to provide some protection if your decisions are later challenged.

There are some occasions where an employee’s concerns about your employment practices escalate and you need to ensure you follow a fair grievance process, investigate the matter impartially and address inappropriate behaviour swiftly.

How can we support you? 

We are here to help guide you through your duties under the Employment Rights Act and make sure your equality and inclusion policies are fair and compliant.

If you do find yourself involved in a discrimination complaint, we can advise you on the suitable resolution and even help you manage the Employment Tribunal process, if it goes further.

If you want further advice on discrimination matters in the workplace, contact our Employment Law team.