One in three parents won't or can't be Bank of Mum & Dad

Thirty-five per cent of survey respondents in Yorkshire said they couldnt or wouldnt help their offspring buy a property, but 32 per cent said they were willing and able to do so. (S)

More than one in three (34 per cent) people say they have not and do not intend to offer financial support to children and grandchildren to help them get on the property ladder, a new study reveals.

In a poll carried out for insurer Royal London, people living in the East Midlands were least likely to offer support, with 40 per cent saying they had not, and did not intend to, offer financial assistance.

They were followed by respondents in the North East (39 per cent), the North West (37 per cent), and Yorkshire, the West Midlands and East of England (all 35 per cent).

Nevertheless, a sizeable proportion of parents are still willing and able to act as the “Bank of Mum and Dad”. Parents in London are most likely to (39 per cent), followed by those in the South West and Yorkshire (33 and 32 per cent respectively).

Of those who said they had helped, or planned to, 37 per cent said the amount would be less than £10,000; 28 per cent said it would be between £10,000 and £20,000. One in nine (11 per cent) quoted figures over £50,000.

Over half (57 per cent) said the money would be a gift, and 27 per cent said it would be an advance on inheritance. Only 15 per cent said the money would be a loan.

Royal London personal

finance specialist Helen Morrissey said: “The rising phenomenon of the Bank of Mum and Dad has received much publicity, but the findings make clear that not all parents have, or are willing, to offer financial support to children.

“There are several reasons for this. House prices in areas such as the North West and East Midlands are much lower than in areas such as London so it may be the case that parents and grandparents feel their family members do not need their support as much as in other areas of the UK.

“It may also be the case that these people have other demands on their money and cannot simply hand it over. Anyone looking to hand over money to help a loved one needs to ensure they take their own future needs into account before doing so, as they do not want to leave themselves short of money at a later date.”

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