Quantcast
Menu

Buy to Let

Parents to put kids on property ladder at university

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
20/02/2015

More than a quarter of a millions parents wish to purchase a property in their child’s university town, research from Direct Line has suggested.

The insurer said rising living costs and the burden of £9,000 yearly fees meant more parents were looking to help their children financially.

One-in-six parents said buying a property for their child to live in while studying would reduce their cost burden.

More than a quarter of current university students live in accommodation owned by themselves, family or friends.

Four-in-ten parents said they wanted to purchase a property to provide a safe and stable environment for their kids to live in. Some 25% said they were looking for a regular income on the property and 17% are hoping for capital returns from their investment.

Jazz Gakhal, director of Direct Line for Business, said students would often welcome additional support from their parents.

“It’s great to see that parents are seeing opportunities to help their children get a first step on to the property ladder and create additional income through buying a property for their university bound children,” he said.

Gakhal warned that parents should make sure the property meets all legal standards, even if it is let to their children.

“The ownership arrangement of the property needs to be made clear from the outset. Parents should remember that if their child is letting out rooms to friends, it is the parent that will become the landlord.

“Parents who believe they may be in this situation should first check with their mortgage provider to see if this is allowed.  They should then educate themselves on the regulations and liabilities surrounding student lettings.”


Share: