Parents are supplying their children with increasing amounts of cash, often from retirement savings, so they can buy their own home, according to research from Alliance & Leicester.
The report reveals that parents feel under pressure to contribute to their child’s first home and are often dipping into savings to help their children onto the property ladder.
The A&L Mortgages survey found parents were giving their children an average of £21,314 to buy their first home, and increase of more than £3,500 compared to last year.
Parents also feel under pressure to assist their children with home buying and the survey found that a third of parents say they would feel guilty if they did not contribute.
One in five respondents say they have already dipped into their savings for this purpose and a further 22% plan to give their children financial help when they are ready to buy a house.
One in ten parents would considering investing a property and renting it to their children.
Stephen Leonard, director of mortgages at Alliance & Leicester, reminds parents to consider their own future, and says: “parents should also remember that as well as helping their son or daughter to fly the nest, investing in a property through a buy to let mortgage, or loaning the money could benefit their own future financial security as well.”
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