Bank of Mum and Dad topping up property costs by £1bn a year

Ryan Fowler

July 18, 2016

property millionaire money cash

The Bank of Mum and Dad is now subsidising children’s rents by £1bn a year, research from Shelter has found.  

Shelter said some 450,000 adults need helping out by their parents just to keep them in their homes, following the study conducted with The Observer.

The analysis found that that one in 20 have borrowed or received money from their parents during the last year to help with property costs.

Remortgagers reap the rewards

Campbell Robb, Shelter’s chief executive, 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 on where to live.”

Additionally the research found that younger people are most reliant on their parents with 11% of those aged 18-24, and 8% of those aged 25-34, receiving financial support.

Shelter estimated that the split on costs breaks down to £850m a year on rent and £150m a year on moving costs.