You are here: Home - Mortgages - First Time Buyer - News -

Parents spend £20bn a year supporting their adult kids

0
Written by: Christina Hoghton
28/06/2017
The first-time buyer burden on parents is £20.1bn according to Aldermore, which worked out the annual cost of supporting children who want to buy their first property.

More than one in five (22%) aspiring first-time buyers live with their parents and a quarter (26%) admit they will have to do so for at least another five years to save for a deposit. This situation is unlikely to get better as almost a third (31%) strongly agree that buying a home is unachievable for them at the moment (a sentiment which is consistent quarter-on-quarter).

This has hiked parents’ outgoings by an average of £4,996 a year in food, electricity and petrol. For those whose children have to live with them for five years, it would total around £24,979. As a result, a third have had to sacrifice saving for retirement in order to support their kids.

Government help needed

When asked what the new government should do to better support first-time buyers, a quarter of respondents said it should address rising house prices, and this figure increased to almost a third in London.

One in 10 reckon that building more homes is the priority.

Charles McDowell, Aldermore’s commercial director of mortgages, said: “First-time buyers have a notoriously difficult time getting on the property ladder. Since saving an adequate deposit remains the biggest obstacle, more and more people have had to move back into the family home to boost their savings.

“Our report reveals just how difficult this can be to navigate, with real impact not just on parents finances but also on the relationship with their children and their own ability to save. Furthermore, as parents are less able to save for their retirement, more people will require help to unlock the value held within their property in later life. This is an intergenerational problem that goes beyond the simple view of the Bank of Mum and Dad.”

See YourMoney.com’s Help your kids buy a house without handing over stacks of cash for other ways to help your children get on the property ladder.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
energy bills
Household bills rise at double the rate of salaries

Household bills increased by an average of 43% in the past decade, twice the rate of wage growth, research reveals.

Close