How much do we still rely on the bank of Mum and Dad?

Piggy Bank SavingsA recent survey of 1000 people who are actively looking to buy property, has highlighted that the ‘bank of Mum and Dad’ is more vital than ever as a foot onto the property ladder.

The research shows that 42% of adults aged 25-34 see raising a deposit for a house the biggest challenge they face. However, 14% of those aged between 18 and 24 said that this was the biggest hurdle for them also.

These statistics can be viewed as showing an acceptance amongst the younger generation that they have no other option then to ask Mum and Dad for help if they want to buy their first home, it is assumed that raising a deposit isn’t a big concern as they have a safety net there.

This is also the case with younger adults deciding to stay with their parents for longer. Figures from thinkmoney.co.uk suggest that parents are saving their children thousands of pounds in rent and living costs.

The average saving of living at home compared to renting a one bedroom flat is around £12,000 a year. A saving of over £500 per month is made with most 18-24 year olds admitting that they don’t pay any rent to their parents.

A third of these live at homers say that they simply can’t afford to rent somewhere to live, a similar figure stated that the cost of renting whilst trying to save money for a deposit on a mortgage was impossible.

There is a clear pattern emerging, parents are having to help their children out to keep a roof over their heads, with all the talk of house prices increasing this could become the norm, as younger adults struggle to buy their first home.

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Posted by: Samantha Turner-Meyern Categories: Economy, Latest News Tags: , , , , Comments Off on How much do we still rely on the bank of Mum and Dad?

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