Parents Help Children Buy Homes

Parents Help Children Buy Homes

Research commissioned by Heartwood Wealth Management revealed that an estimated 5.5 million parents have provided financial support to aid their children with their first property purchase.  This amounts to an overall total of £116bn, with an average contribution of £20,921 per child.  Also one in three parents intend to help their children in this way, with an average contribution of £22,401 per child.

David Lough, chief executive of Heartwood Wealth Management said “Given the size of the sums involved, it is vital that parents factor this into their financial plans.  A property can now cost up to 10 times a first-time buyer’s salary, rather than three times a generation ago”.

Our view

These are staggering results.  We know that it is difficult to access the property ladder at the moment buy these figures clearly demonstrate that the property market needed some form of correction so that earnings can catch up with property prices.

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