Over half of current home owners with adult children have or expect to help their children financially to buy a property - and many feel guilty if they can’t.
The latest research by HomeOwners Alliance shows that parents play a pivotal role in helping their children get a foot on the housing ladder and worry about their children who do not currently own their home being able to buy.
Among this group, 59% worry about their children’s chances of owning in the future. Half of parents with adult children who do not yet own a home wish they could do more to support their children financially to buy and a quarter feel a real sense of guilt about the level of support they are able to provide.
Amongst home owning parents with adult children who do not own their home, 59% worry about their children’s chances of owning in the future; 50% wish they could provide more financial support than they can; and 25% feel guilty about not being able to provide more support.
Among those who expect to support their children, 28% say this will mean dipping into savings or investments; leaving 13% concerned they won’t have enough money for the long term and 10% worried they might not have enough money should they need long term care.
Some 9% of parents lending support say they may need to work longer and delay retirement and a similar proportion (9%) say they may need to downsize their home.
Homeowners Alliance chief executive Paula Higgins says: “While we all know that the Bank of Mum and Dad is supporting many people’s first steps onto the housing ladder, what our survey shows is the emotional and financial strain it puts on families in today’s Britain. Parents with adult children understand the importance of homeownership but are overwhelmingly worried, want to help more and feel guilty they can’t.
“Beyond the emotional burden, there is a worrying picture emerging of the impact this is having on older parents' life. Our survey found that many people were worried that helping may leave them financially short. And 1 in 10 may even delay their retirement and work longer into old age in order to help their child buy a house.
“The system is just too pressurised. At one end of a lifetime we have young people giving up on the dream of home ownership unless they’re lucky enough to have access to the bank of Mum and Dad; while in later life, we see parents using savings and delaying their retirement to help them. We are calling on the government to reinstate local housing targets as a matter of urgency.”
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I don’t , entitled kids make me sick
My sister being a prime example
Agreed there George, the entitled why do they consider themselves entitled ?
I think it’s just built into the spoiled brat generation
Killing them with kindness ?
There is a different mindset these days. People want everything and they want it now. When moving house they want all new stuff, the idea of getting furniture or curtains second hand horrifies them. They also want the new car, the holidays, the sky tv, new mobile phone etc etc. I put it down partly to media and advertising, makes people think everyone else has a perfect life and everything they want.
I don't see why anyone should feel guilty about not financially helping or that they should inappropriately pressure their kids into homeownership.
Things have changed massively since we were their age. The standard of rental properties is much, much higher. The cost of buying and selling is much higher. Making a mistake and buying the wrong property is financially catastrophic these days.
Equally though, a lot of us have a choice of helping our kids while we're alive or knowing the government will take vast amounts of IHT when we die.
I don’t feel guilty as I have helped my kids when I sold my last BTL, it was mortgage free, and after CGT it allowed my children to put down a very sizeable deposit. My kids have been saving like mad since 18 years old, but the house prices have simply outstripped their ability to keep up, it’s lazy to think it’s all about cutting back on a Mocha or a Latte. When I bought our first house the multiple of our salaries was about 3x to get the mortgage, and have a life after paying it…. Not now, it’s 8 x in most places, and if you’re single 😬😬. I do feel sorry for the generation coming through, they have been screwed over with mass migration, zero real housing being built, and the collapse of the pensions market where the really good jobs with gold pensions are a distant memory . We had the very best of it, I will do what I can to help my family. God help those with parents who didn’t make such astute decisions.
I must be a bit younger than you Simon, I remember getting my granny to make my curtains on the old sewing machine. God bless her she wanted to come to my first house and make everything from curtains to cushions.
Nowadays they will want it from Louis Vuitton!
Multiple when bought was x4 and 2.5 as a couple.
I had a work colleague who carried on working until he was 76 so he could help his daughter pay her mortgage after a messy divorce. He stopped working as soon as her mortgage was paid off.
As long as your kids are doing the right thing……. Not blowing it on weed and holidays, then I am all for helping, what else is more important than family… fyi, nothing.
When I was living in a Rented room I was interested in buying a property I approached an Agent who was all business and referred me to a broker in Kensington but got knocked back they expected you to be married that time, he Charged me £50.00 more than 2 weeks wages at the time + lost a day from work.
I continued to save and bought a plot in Ealing Conservation area, then I was able to approach the Bank and borrow to self-Build with an interest rate of 13% so spare a thought you guys that have been borrowing money for 1-2%.
Build by my own hand a Detached 5 bed house with Double Garage with hand tools only no electricity on site or available, no family support possible and Dad RIP.
Incidentally I still have the house over 50 years on, now here comes Mr Gove squatter with his Renters Reform Bill just hand it over for life to someone who never done nothing and may have spent his life on Benefits. Take note and read this next week in parliament ?
The fact that they refuse me the Mortgage was the biggest favour they could have done me, well done and good luck with your Credit scores.
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