Adult children have increasingly been relying on parents to help them with house purchases, according to the latest findings of The 2015 Lloyds Bank Family Savings study.
The three-page study found that more parents were having to provide the necessary financial support for deposits to help children get a foot on the housing ladder.
The research also showed a sharply rising trend in parents helping to pay their children’s rent payments. According to Lloyds, the so-called ‘power parents’ have handed a total of £30.65bn to their adult children in 2015.
Grandparents were also involved in the support of their grandchildren, contributing £6bn to the pot. While items paid for include such as weddings and houses, help has also been given for daily essentials.
This year’s sharply rising demand for help with rent, and the fact that house purchase and rent support are now the two largest components of parental financial support, was “a clear sign of the times”, the study said.
Adviser view
Robin Baker, adviser for Leeds-based Eden School Fees Planning, said: “The findings of the Lloyds study do not surprise me, as property prices exceed the amount many young people earning the national average earnings can afford to save for adequately.”
