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The bank of Mum and Dad are forking out £1.2 billion a year

Monday 01 August 2016

Parents are pitching in to help keep their kids in rented accommodation by forking out £1.2 billion a year, stats have suggested.

Homeless charity, Shelter, say that almost half a million young adults are still be subsidised by the parents to help keep a roof over their heads.

Conducted with The observer newspaper, around one in 20 people have been forced to approach the Bank of Mum and Dad to to help cover the costs.

And with the continuing costs of renting continuing to climb steadily, added to what Shelter says are 'extortionate' fees on top, it sounds like it is not an issue that ease anytime soon.

Shelter's chief executive Campbell Robb said: "With housing costs sky high it’s not surprising that the Bank of Mum and Dad is no longer just relied on for help with buying a home, but renting costs too."

"We know that the majority of private renters are forking out huge proportions of their income to cover the rent each month, and that’s not even taking into account the extortionate deposits and fees that need to be paid. 

"For those who aren’t lucky enough to receive help from parents, expensive and unstable private renting leaves many struggling. 

"We hear from people every day who simply can’t keep up with rising rents."

Meanwhile, it's a problem not exclusive to the rental market, with a Government survey suggesting the number of first-time buyers asking for financial help from family and friends to get on the ladder has risen by 6% in the last two decades.

It now stands at 27%, according to the English Housing Survey.

"It continues to be harder and harder for first-time buyers to get that foothold on to the property market," said Paula Higgins, chief executive of the Home Owners Alliance.

"The fact that first-time buyers are becoming older has a knock-on impact in that they are renting for longer, which may mean a later start if they wish to have a family."

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