May 23 2007
Adult children are increasingly turning to their parents to help them financial when they look into the prospect of buying their own home, according to a recent report.
Research form the Council of Mortgage Lenders (CML) has established that around 35 per cent of young adults feel that without financial backing from their parents they will be unable to make the first step onto the housing ladder.
In addition, the CML study found that 76 per cent of recent homebuyers aged under 25 felt it would have been impossible for them to make their first property purchase without help from the so-called "bank of mum and dad".
"Over the past few years, parents have already been providing significant help to younger home-buyers, and there is uncertainty about whether they can do even more," said Bob Pannell, head of research at the CML.
Meanwhile, the government is aiming to encourage British parents to take steps to secure the financial futures of their offspring by investing in a child trust fund, which were introduced in September 2002.
