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Parents pay kids to leave home

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03/08/2006

Parents are giving their offspring an average of £17,677 to get them out of the family home and into their own property.

According to Alliance & Leicester Mortgages movingimproving index, 46% of parents intending to help out their adult children financially regard helping them with a deposit for their own home as part of their parental duties.

The index claims that 34% of parents would feel guilty if they didn’t help their kids out with substantial sums of money.

One in six parents will give or lend their offspring over £30,000 to wave their last parental duty goodbye.

However, according to the index, 24% of parents say their children are old enough to be financially independent.

Stephen Leonard, Director of Mortgages at Alliance & Leicester said: “Our research reveals that many parents are planning to support their children well past the age of 18, especially when it comes to their first home.

“As house prices continue to rise, it is no wonder first time buyers are looking for that bit of extra funding from their parents to get on the property ladder. This may be one of the reasons we are witnessing continuing first time buyer activity despite houses becoming more expensive.”

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