There has been a generational decline in homeowners, and new research has shown that over half of those on the property ladder with adult children have or expect to help their children financially when buying a home.
The latest research by HomeOwners Alliance shows that homeowning parents worry about the prospects of their adult children who do not currently own their home being able to buy. A staggering 54% surveyed said they expect to shell out for their offspring’s first home and one in four feel guilty about not being able to provide support.
The homeowners who expect to help their children financially to buy a home reportedly have said that providing this financial support is expected to have a direct impact on the lives of parents themselves with 56% expecting to be affected.
Paula Higgins, Chief Executive, Homeowners Alliance, says:
“While we all know that the Bank of Mum and Dad is supporting many people’s first steps onto the housing ladder, what our survey shows is the emotional and financial strain it puts on families in today’s Britain. Parents with adult children understand the importance of homeownership but are overwhelmingly worried, want to help more and feel guilty they can’t. Beyond the emotional burden, there is a worrying picture emerging of the impact this is having on older parents’ life. Our survey found that many people were worried that helping may leave them financially short. And 1 in 10 may even delay their retirement and work longer into old age in order to help their child buy a house.
The system is just too pressurised. At one end of a lifetime we have young people giving up on the dream of homeownership unless they’re lucky enough to have access to the bank of mum and dad, while in later life, we see parents using savings and delaying their retirement to help them. We are calling on the government to reinstate local housing targets as a matter of urgency.”
HomeOwners Alliance have found that parents play a pivotal role in helping their children get a foot on the housing ladder and worry about their children who do not currently own their home being able to buy. Among this group, 59% worry about their children’s chances of owning in the future. Half of parents with adult children who do not yet own a home wish they could do more to support their children financially to buy and a quarter feel a real sense of guilt about the level of support they are able to provide.
Among those who expect to support their children, 28% say this will mean dipping into savings or investments; with 13% worring that it will affect their long term finances. One in ten parents lending support say they may need to work longer and delay retirement and a similar proportion say they may need to downsize their home.
