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Aug 14, 2006
According to Alliance & Leicester
Mortgages’ quarterly movingimproving index, parents are spending £17,677 to
help their children get onto the property ladder. A&L also found that
almost half (46%) of the respondents think that buying a house for their
children is still part of their parental obligations.
The company pointed out that £17,677 is the equivalent of paying the
deposit of an average first time buyer property, with some to spare. The study
also found that one in six parents are prepared to give or lend their children
over £30,000 for deposits. A third (29%) of those not planning to give cash to
their offspring and not feeling guilty about it believe their children should
be able to stand on their own two feet, while a further 24% of parents say
their children are old enough to be financially independent.
Stephen Leonard, Director of Mortgages at
Alliance & Leicester comments: “Our research reveals that many parents are
planning to support their children well past the age of 18, especially when it
comes to their first home. As house prices continue to rise, it is no wonder
first time buyers are looking for that bit of extra funding from their parents
to get on the property ladder. This may be one of the reasons we are witnessing
continuing first time buyer activity despite houses becoming more expensive.”
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