The Bank of Mum and Dad isn’t just a phenomenon in the sales market - new research shows it’s a growing trend in the lettings sector too.
Data from Legal & General and the Centre for Economics & Business Research shows the Bank of Mum and Dad will fund £2.3 billion of rental payments in 2017, paying out on average £415 each time.
Parental financial help is now key for nine per cent of renters across the UK.
Previous Legal & General/CEBR research showing the Bank of Mum and Dad will support £6.5 billion of lending to first time buyers to get on the property ladder this year means parental help will fund some £8.8 billion in 2017 helping children to either rent or buy a home.
Other findings from the research suggest that 10 per cent of renters have had parental financial assistance covering their security deposit, and five per cent have similar help for their moving costs or letting agents’ fees.
Unsurprisingly, such payments to the rental sector are highest in London and the East of England, lending £626m and £604m in these areas respectively. Parents also fund £175m of rental payments in the North West and £369m in Yorkshire and the Humber.