Parents are handing over thousands of pounds to grown-up children so they can take their first step onto the property ladder, according to Skipton Building Society. The Society estimates it costs UK parents an average of £8,000 to help children leave home, including a £5,000 deposit, creating a potential total of £16bn nationwide.
Skipton, will be hosting special ‘parents evenings’ in branches offering practical advice on what parents can do to help children onto the property ladder. It reports that 18% have dipped into their child’s inheritance funds and 30% have given cash to their offspring and a further one in five parents are considering taking out a personal loan for their children.
Jennifer Holloway, head of media relations at Skipton, noted that many parents enjoy having children at home, adding: ‘Despite the help being offered to first-time buyers, their numbers are continuing to drop as reported in the various market index, and by figures from the Council of Mortgage Lenders. In the first five months of this year first-time buyers accounted for 31% of the market, down from 38% last year, according to Halifax. Every parent wants to help their child, but it seems that some will go to great lengths to help them fly the nest.’
Close to a quarter (23%) of those parents surveyed have forgone a holiday, and one in 10 have missed debt repayments in order to make funds available for children to go it alone.