Over recent years, it’s become clear that children have become much more reliant on their parents.
Whether it’s tagging along on the annual trip abroad or staying at home long after university, a mix of financial and personal factors have meant parents are now ‘parenting’ longer than they might have expected. However, even if parents are prepared to house their offspring, that doesn’t always suppress their hopes of flying the nest.
As a result, children who have once been looking to climb the property ladder are stuck; whilst they’re on the lookout for a new home, high prices mean they’re confined to living in their parent’s box room (that’s now been converted into a gym).
So just where are these hopeful buyers supposed to go? The answer, for many of them, is one that won’t come as a surprise: The infamous Bank of Mum and Dad.
Whilst borrowing money from parents may be nothing new, a rising number of first-time buyers are prepared to enter loan agreements with their parents just to help them take that first step on the property ladder.
In fact, according to Post Office Money, around 2.2 million have received a loan from their parents, with the average sum standing at £24,347.
Though the number of children seeking financial help may seem high, it’s hardly surprising.
Being able to purchase that first home is a significant milestone in anyone’s life, so it’s only natural to seek financial help from those closest to you if you’re struggling.
What’s more, having their own home will ultimately mean that children are finally out from under their roof and let’s face it, peace and quiet is not something you can put a price on. Neither is not having to fight for the remote.
Commenting from LPL, Louise Stephens-Pantoja said: “The property market has changed dramatically over the last few years, with those looking for their first home now suffering the consequences. That said, the availability of Government initiatives has enabled first-time buyers to access the housing ladder much more easily, without having to rely on parental loans.
If you’d like guidance or advice on finding the best option for you, speak to one of our team today by calling 0333 305 5249 or visit our website at www.lpropertylawyers.co.uk
