'Parents give thousands to help kids onto housing ladder'
Parents around the UK are giving an average of £21,314 to their children to help them get onto the housing ladder, a new report from Alliance & Leicester has revealed.
British parents are dipping into their own savings to give their children a better chance of becoming a first-time home buyer and often because they would feel guilty if they didn't, the latest research suggests.
A number of child savings products are now available from financial services providers around the country and the latest figures show that British parents are prepared to give their children over £3,000 more to help them buy a home than was the case last year.
"Rising house prices mean first-time buyers have to find bigger deposits to secure their property, with many having to fork out for stamp duty as well," said Stephen Leonard, director of mortgages at Alliance & Leicester.
"It has become increasingly common for parents to offer financial assistance to their children when they come to buy their first home."
A government initiative means that every child born after September 2002 in the UK has a child trust fund opened in their name and £250 added in an effort to encourage parents to help their offspring gain a solid financial start to their adult life.
