Are you among the millions of parents who helped their children afford their first home by paying the deposit to secure their mortgage?
But did you know that more and more parents are also helping out with their children’s rental payments too?
A report recently published by Legal and General found that “the Bank of Mum and Dad” will have paid £2.3 BILLION worth of rent by the end of this year – on top of the £6.5 billion they are already paying in deposits and mortgage repayments.
Interestingly, if you add up the figures it would make the Bank of Mum and Dad the ninth largest lender in the UK – alongside the likes of the Yorkshire Building Society.
In the survey, a quarter of tenants aged between 25 and 44 said they regularly had help from their parents to pay their rent, as well as providing cash for moving costs like security deposits and agency fees.
It’s another reminder of how much accommodation costs have risen in recent times – the latest stats are that rents have increased by about 3% over the past year – and many young people simply cannot afford to rent without contributions from their parents.
High time, then, that the Government made a concerted effort to improve the affordability of housing.