The latest property report by Aviva revealed that parents in London, the East Midlands and the North East were the most generous when it came to giving deposits for houses, all giving contributions of £36,000, £32,500 and £27,950 respectively.
Their report based on 45 homeowners showed that people in the Capital were giving much larger deposits, because an average house in London now costs around £600,000. Aviva said that Nationally they give an average of £25,090 to their children to buy a home.
More and more children are turning to the bank of Mum and Dad in order to secure the purchase of a property – 43% of the 45 homeowners surveyed said that they believe that their children would never be able to get on the housing ladder without family assistance. Two out of five homeowners said they would like to help out but couldn’t afford to, with 12% saying that if they gave any financial assistance they would probably miss a generation and give it to their grandchildren instead.
Alistair McQueen, savings and retirement manager at Aviva, told the Daily Mail: 'Home ownership is being talked about more than ever as today's millennial’s struggle to get their foot on the housing ladder.
'We are seeing a growing effort among parents and older generations, who have traditionally benefitted from high levels of homeownership and house prices, to financially support their family members. However, these trends have not freed young people from financial worries and there appears to be great divergences in terms of support given in different parts of the country.
'In our latest research, we have been able to unlock the hopes and worries of over-45 homeowners across the UK and take a closer look at how today's millennials are being supported by the 'Bank of Mum and Dad'. The findings show a real sense of wanting to help younger relatives overcome barriers to property ownership, and those who have been helped in the capital have received around £36,000 on average.’
If you are considering helping your children to buy a property then why not pop into your local branch of Intercounty or give our team a call on 01279 655248.
Source: Daily Mail