Bank of Mum and Dad to fund £2.3bn of rental payments
The Bank of Mum and Dad will fund £2.3bn of rental payments in 2017 research by Legal & General and Cebr shows.
This suggests an average of £415 every time a rental payment is made, helping 9% of renters across the UK with their financial commitments to their landlords on nearly 460,000 properties.
Dan Batterton, fund manager, build to rent at LGIM Real Assets, said: “The lack of affordable housing, low wage growth relative to inflation and burdens of student debt mean that many kids can’t even rent somewhere without significant contributions from their family.
“Parents want to help their kids get on in life, and the Bank of Mum and Dad is a testament to their generosity, but it is also a symptom of our broken housing market.
“The UK is experiencing a supply-side crisis in the rental sector. We need to build more homes for the young, old and families alike – more quickly and cost effectively.”
The Bank of Mum and Dad’s payments were unsurprisingly highest in London and the East of England, lending £626m and £604m in these areas respectively.
Batterton concludes: “The build to rent sector is only going to become more important in the UK’s housing mix.
“Infrastructure, jobs and local economic growth are all key to creating thriving communities where people want to live.”