More than half of parents can help their offspring onto the property ladder
The majority of parents across the UK could help their kids get onto the property ladder, according to a new study.
As many as 61 per cent of those questioned as part of the Post Office Money survey said they can help their offspring onto the property ladder in some way. However, the number who said they can actually assist by paying the whole of the mortgage deposit was far lower.
The majority of those surveyed said they help their children by offering them rent-free accommodation while they save for their first home, or by looking after their kids for them so they can save money on childcare.
When it comes to paying the full deposit to help get their children on the property ladder, only five per cent of parents said they are in a position to do this. This comes despite the fact many young people say they rely on their parents for financial assistance when the time comes to buy their first house.
According to the survey, most young people need assistance in this regard because they don't have the ability to put enough money away themselves to be able to afford a mortgage. It said that the average first-time buyer can only afford to put away seven per cent of their income each year.
It was also discovered that even though 81 per cent of parents say they want to be able to help their children, many feel guilty because they simply cannot afford to.
"For reasons beyond their control, the vast majority of the younger generation will need help and we can see that parents are doing all they can to support their children as 59 per cent of parents we spoke to are able to make a financial contribution and many supported their children’s saving in other ways," said Owen Woodley, managing director of Post Office Money.
"However, only five per cent of parents were able to provide the full amount required for a deposit and so first-time buyers are still having to work hard to make their dream a reality."
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22-October-17General Lettings News