Parents burdened by Generation Rent

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by Gill Montia

The struggles facing young Britons trying to move into homes of their own are impacting the financial future of their parents and families, a new study from Halifax and NatCent Social Research claims.

According to the analysis, half of 20 to 45-year-olds questioned think that Britain will become a nation of renters within a generation, while the reliance of children on the Bank of Mum and Dad has left a third of parents concerned for their own financial futures.

Just 14% of non-homeowners aged between 20 and 45 are actively saving for a deposit and only 8% of parents questioned believe first-time buyers should borrow money for a deposit.

Forty-four per cent of parent respondents had therefore contributed, or have plans to contribute, an average £12,800 to help their offspring buy a property.

In addition, 24% of parents questioned have welcomed their children back home as adults, due to the current state of the UK rental and housing markets.

Stephen Noakes, mortgage director at Halifax, comments: “Our research shows that one year on, young people are still downbeat about their chances of owning a home, and we’re also seeing the impact this has on their parents.

“Despite concern for their own financial future, parents continue to stump up a contribution or welcome their children back to the nest to allow them to save.”