Date Published 23 May 2012
Britain`s parents are going to increasingly extreme lengths to get their children on the property ladder, research from PrimeLocation.com reveals.
The survey shows that almost two thirds (63.4%) of parents whose children have left home contributed financially to the move, with an average of £38,903 being paid towards their children`s first homes.
And because first-time buyer properties cost on average £154,991 at the moment, this represents a 25% subsidy.
Furthermore, almost 11% of children who have left home did so with a contribution of more than £100,000 from the Bank of Mum and Dad. Some 7% of respondents say they have bought a house for their offspring outright, while 40% have contributed to a deposit.
A further 11% allow their child to continue living at home for free to save up for the move.
Among parents whose children still live at home, an overwhelming majority said that they would be willing to make significant sacrifices to ensure their children are able to buy a home.
More than a quarter (28%) said that they would be willing to sacrifice luxury or non-essential purchases to save for a contribution, while a further 16% said that they were prepared to reduce their standard of living.
However, a large proportion of parents are willing to take more drastic steps to provide for their children, with 20% saying that they would secure funds by withdrawing from their pension or savings and just under 13% prepared to take on new or additional mortgage debt. One in six parents said that they would be willing to downsize their property in order to release the equity required for a deposit on their child`s first home.
Nigel Lewis, property analyst at PrimeLocation.com said: "Time was when parents would cut financial ties with their children after they left school but, increasingly, the costs of getting started in life are increasing and parents are having to step in and help including, our research shows, getting them on to the property ladder.
"Nevertheless, with nearly two-thirds of the UK`s parents providing financial assistance, this shows that despite the difficult economy people are still viewing the property market as a worthwhile investment."