Mortgages  

Parents financing nearly half of housing transactions

Data from Legal & General’s UK housing transitions poll found that the bank of mum and dad is financing 45 per cent of all UK house purchases.

According to the figures, the East Midlands, at 55 per cent, was identified as the region where young people are most reliant on money from parents with those surveyed saying they would not have bought their home without their parents’ assistance. The North West came next at 42 per cent.

By contrast, buyers in the West Midlands and Scotland were the most self-sufficient with 19 per cent and 8 per cent respectively.

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Despite the government’s assistance schemes such as Help to Buy and Funding for Lending, the survey found that 17 per cent of these buyers needed family financing to secure their first home and 28 per cent needed financing to buy their current home.

The survey also revealed that just under half of bank of mum and dad transactions were less than £25,000, but 6 per cent of the transitions were over £100,000.

Adviser View

Jane King, adviser for London-based Ash-Ridge Private Finance, said: “The clients we deal with do get help from their parents. I think the proportion is higher than 45 per cent: I suppose this is because the area affected. London is particularly expensive.”