Parents up help for first-time buyers
High house prices put off many first-time buyers
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Saturday, 25, Aug 2007 12:01
Parents in the UK now spend an average of £21,314 helping their children buy their first home, a survey suggests.
Over two-fifths of parents either plan on giving financial assistance to their first-time buyer offspring or have already done so, according to an online YouGov poll commissioned by Alliance & Leicester (A&L).
With the average price tag for the bottom rung of the property ladder reaching £162,055, according to government figures, A&L director of mortgages Stephen Leonard says extra funding from parents can "make the difference" for many.
"Rising house prices mean first time buyers have to find bigger deposits to secure their property, with many having to fork out for stamp duty as well," he commented.
"It has become increasingly common for parents to offer financial assistance to their children when they come to buy their first home."
Over one-third of parents feel obliged to help out their children and fathers are especially prone to feeling guilty if they fail to provide assistance.
Not all are so altruistic, however. Nearly one in ten of the survey's respondents said they would charge their children rent in order to ensure a secure home for their own retirement.