Bank of Mum and Dad to the rescue!

Thursday 8th August 2013

Parents are bank rolling the next generation of homeowners with an average contribution of £17,000 towards their children's property.

Generous parents who want to assist their children get on the property ladder are stumping up the cash for the next generation of homeowners.
New research from NatCen Social Research for housing charity Shelter shows that over a quarter of first-time buyers have been assisted by financial help from their parents.

Since 2009, 27% of UK first-time buyers needed help from parents to get a foot on the ladder - and that's up from 17% in the previous four years.

When parents are able to offer assistance to the cash-strapped younger generation, the average contribution is £17,000, which is more than half the average deposit needed of £28,000.
This means that parents are contributing around £2 billion a year to the housing market.
However Shelter is warning that one in five parents are using up retirement funds in order to help their children, as well cutting back on their spending.

'The fact that the Bank of Mum and Dad has to play such a central role in our housing market shows just how desperate the situation has become for a generation that's priced out of a home of their own,' says Shelter Chief Executive Campbell Robb.

Source: House to Home