Can’t help, wont help kids onto the ladder, say a third of parents
Over a third (34%) of people say they have not and do not intend to offer financial support to children and grandchildren to help them get on the property ladder.
In a poll of 2,100 people carried out for Royal London people living in the East Midlands were least likely to offer support, with 40% of respondents saying they hadn’t and don’t intend to, offer financial assistance.
They were followed by respondents in the North East where 39% of respondents can’t or wont help their kids onto the ladder. In the North West 37% of respondents said they can’t or won’t help as did 35% of parents/grandparents in Yorkshire and Humber, the West Midlands and East of England.
Able to help
Of course, many parents are still both willing and able to financially support family members to buy a home by giving them a cash lump sum.
Parents in London were most likely to want or be able to help their offspring, with 39% saying they either had or intend to help their children with a property purchase.
They were followed by respondents in the South West 33% said they either had or intended to provide this support.
Of those who said they had, or planned to provide assistance, over a third (37%) said they expected the amount provided to be less than £10,000. A further 28% said they had, or expected to provide somewhere between £10,000 and £20,000 to family members.
Royal London spokesperson Helen Morrissey said: “The rising phenomenon of the Bank of Mum and Dad has received much publicity but the findings make clear that not all parents have, or are willing, to offer financial support to children.
“There are several reasons for this. House prices in areas such as the North West and East Midlands are much lower than in areas such as London, so it may be the case that parents and grandparents feel their family members do not need their support as much as in other areas of the UK.
“It may also be the case that these people have other demands on their money and cannot simply hand it over. Anyone looking to hand over money to help a loved one needs to ensure they take their own future needs into account before doing so, as they do not want to leave themselves short of money at a later date.”