Some 26% of people with adult children have given them money as a ‘gift’ to help them on to the property ladder, research from Engen Group has revealed.
The research also found that a further 7% have provided them with loans to do this whilst one in four (24%) plan to provide financial assistance in the future.
A minority of 43% saying they haven’t or do not plan to do so.
However the research that 40% of parents find that there finances are adversely affected. One in five (20%) of those who have done this said they had to cash in savings and investments to help them meet their living costs.
Some 19% said they had fewer holidays and 6% claim to have ‘downgraded’ their transport by for example, selling their cars and using public transport instead. Whilst 4% have had to cancel their membership of clubs.
Graeme Boiardini, CEO of Engen Group, said: “There is a great deal written about the difficulties facing first-time buyers in securing a foothold on the property ladder, and the money provided by the ‘Bank of Mum and Dad’.
“However, there is little written about the impact on the standard of living on parents who provide this financial support to their children. The problems created by the lack of affordable housing are much deeper than many realise.”