Bank of Mum and Dad lends kids Â£2.3bn to pay the rent
The Bank of Mum and Dad will fund Â£2.3 billion of rent for their offspring, contributing on average Â£415 to every payment.
Parents now helps 9 per cent of renters across the UK with their financial commitments to their landlords on nearly 460,000 properties.
The research, from Legal & General,shows that the Bank of Mum and Dad now funds over a quarter (26 per cent) of all UK property transactions, putting it on a par with the ninth largest mortgage lender in the UK (up from tenth last year).
Previous Legal & General/Cebr research showed the Bank of Mum and Dad will support £6.5billion of lending to first time buyers to get on the property ladder this year, meaning parents will fund some £8.8 billion in 2017 helping children to either rent or buy a home.
Dan Batterton, Fund Manager, Build to Rent at LGIM Real Assets, said: ““It is a real challenge for young people who are reliant on parental handouts just to make the rent. The intergenerational inequality that creates the demand for BoMaD funding continues to widen and now it’s affecting renters too.
“The lack of affordable housing, low wage growth relative to inflation and burdens of student debt mean that many kids can’t even rent somewhere without significant contributions from their family.
“Parents want to help their kids get on in life, and the Bank of Mum and Dad is a testament to their generosity, but it is also a symptom of our broken housing market.”