One in three parents helps their children to buy a home
One in three parents provide financial assistance to help adult children buy a home, according to Engen Group.
The property business found that 26% of people with adult children have given them money as a ‘gift’ to help them onto the property ladder, and a further 7% have provided them with loans to do this.
One in four (24%) say they plan to provide financial assistance to adult children in the future to help them onto the property ladder, with a minority of 43% saying they haven’t or do not plan to do so.
Tightening their belts
However, helping their offspring onto the property ladder adversely impacts the finances and living standards of many parents.
One in five (20%) of those who provided gifted deposits to their kids said they had to cash in savings and investments to help them meet their living costs. And 19% admitted they had fewer holidays as a result.
In some cases parents have ‘downgraded’ their transport by selling their cars and using public transport instead, or cancelled their membership of clubs.
Graeme Boiardini, CEO of Engen Group said: “There is a great deal written about the difficulties facing first-time buyers in securing a foothold on the property ladder, and the money provided by the ‘Bank of Mum and Dad’.
“However, there is little written about the impact on the standard of living on parents who provide this financial support to their children. The problems created by the lack of affordable housing are much deeper than many realise.”