According to a new report from the insurer Legal and General, parents will lend £6.5 billion this year. This is up from the £5 billion estimated a year ago.
The so-called Bank of Mum and Dad contributes an average of £21,600 to help first-time buyers, 23 percent higher than last year.
Nigel Wilson, CEO of Legal & General said: “The intergenerational inequality that creates the demand for BOMAD funding continues to widen – younger people today don’t have the same opportunities that the baby-boomers had, including affordable housing, defined benefit pensions and free university education. Parents want to help their kids get on in life, and the Bank of Mum and Dad is a testament to their generosity, but it is also a symptom of our broken housing market,”
“Parents want to help their kids get on in life, and the Bank of Mum and Dad is a testament to their generosity, but it is also a symptom of our broken housing market,”
“The UK is experiencing a supply-side crisis in housing – we are simply not building enough houses. We need to build more homes for the young, old and families alike – more quickly and cost-effectively. Legal & General is playing our part by building and financing thousands of new homes. As well as providing much needed new properties, it will also deliver economic growth and new jobs,” he added
“Legal & General is playing our part by building and financing thousands of new homes. As well as providing much needed new properties, it will also deliver economic growth and new jobs,” he added.
According to the report, parents in the South West of the country are most generous, providing an average of £30,000 financial support. This is compared to the average £12,500 given by Welsh parents.
According to the Legal & General research, there is little evidence of the amount given by parents and the location of the houses.
“Parents largely seem to decide on a fixed amount they will contribute regardless of the location of the purchased property,” the report said.