According to research from the Homeowners Alliance, which surveyed around 2,000 adults, approximately half say they wish they could offer more support as the Bank of Mum and Dad than they currently do, and a quarter feel guilty about not being able to offer support.
Of those homeowners who expect to help their children financially to buy a home, 56% expect the financial support to have a direct impact on their lives.
Among those who expect to give financial support as the Bank of Mum and Dad, 28% said they would dip into their savings or investments, with 13% concerned about whether they would have enough money for the long term, and 10% worried that they may not have enough money to cover long-term care if required.
Nearly one in 10 parents lending support said they would need to work longer and delay retirement, and a similar proportion said they may need to downsize their home.
Around 59% said that they worry about their children’s chances of getting onto the property ladder at all.
‘Emotional and financial strain’
Paula Higgins, chief executive of Homeowners Alliance, said: “While we all know that the Bank of Mum and Dad is supporting many people’s first steps onto the housing ladder, what our survey shows is the emotional and financial strain it puts on families in today’s Britain.
“Parents with adult children understand the importance of homeownership but are overwhelmingly worried, want to help more and feel guilty they can’t.”
She continued: “Beyond the emotional burden, there is a worrying picture emerging of the impact this is having on older parents’ life. Our survey found that many people were worried that helping may leave them financially short. And one in 10 may even delay their retirement and work longer into old age in order to help their child buy a house.
“The system is just too pressurised. At one end of a lifetime, we have young people giving up on the dream of homeownership unless they’re lucky enough to have access to the Bank of Mum and Dad, while in later life, we see parents using savings and delaying their retirement to help them. We are calling on the government to reinstate local housing targets as a matter of urgency.”
Research from Legal and General on the Bank of Family, which is financial support from parents, grandparents and other family members, found that lending reached £8.1bn in 2023, making it the ninth-largest lender in the UK.
