Parents helping children get onto the property ladder
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by Kay Mitchell
Research from Abbey Mortgages has established that parents are helping their grown-up children get onto the property ladder. Figures show that one in seven first-time buyers receive money from their parents, worth a total Â£27 billion.
On average, parents are giving their offspring Â£5,874 to get a foot on the property ladder.
In addition, parents are providing 17 hours of help over choosing a property and 22 hours helping their children move in.
However, One in 16 first-time buyers have more business-minded parents and have to borrow an average of Â£19,619 to get on the property ladder. Though it was not revealed how many parental loans are fully repaid.
Nici Audhlam-Gardiner of Abbey Mortgages said buying a first property is an incredibly exciting experience and understandably most parents want to share in this milestone.
Property prices have risen so much over the last few years, buying that first home is also a bigger and more daunting investment than it was for the previous generation so guidance is undoubtedly required, added Abbey.
Those in London and the south east are given the most help at Â£6,485 on average, followed by children in the north of England, who receive Â£6,760. Children in Scotland were given the least financial help with just Â£2,825 on average.
Recent research from Abbey Mortgages also suggests that first-born children are more likely to receive financial help from their parents when purchasing their first home.
A study by Abbey showed that 17% of first-borns received financial help when purchasing a home, while this figure fell to 12% for second-born children and 9% for third-born siblings.
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