British parents £29bn to buy house for kids - More than double the level of a decade ago
The so-called 'bank of mum and dad' is becoming a growing source of funding for UK adults looking to get on the housing ladder, according to a new report by the Resolution Foundation.
The total value of financial gifts reached 29 billion pounds ($49.2 billion) in 2018-2020, more than double the level of a decade ago, the research found. This is due to the increase in the number and size of gifts, which largely come from parents, to help first-time buyers put down a deposit.
Around 650,000 adults received a transfer of £10,000 or more in the two-year period, with such gifts now making up around 20 per cent of the total. The findings underline the scale of the housing crisis facing the new Labor government after years of rampant house price inflation and a cost of living crisis.
Affordability is likely to continue, with the Bank of England signaling it is in no rush to cut the cost of borrowing and a rise in employer payroll taxes threatening to translate into lower wage rises.
Young people in their 30s, the age at which most buy their first home, were the main beneficiaries of parental help, the Resolution report said, with those from wealthier families most likely to receive support.
This wealth gap between homeowners and renters is likely to be passed down to the next generation. Almost all homeowners expect to leave an inheritance, compared to less than half of renters.
Rampant rent inflation is making it harder for young people to raise enough funds for a deposit without the help of their parents. A separate report from the Resolution Foundation estimated that it would take the typical young family over 14 years to save for a deposit, almost twice as long as in the mid-1990s.
Prime Minister Keir Starmer hopes to fix the housing crisis by building 300,000 homes a year, a feat no government has achieved since Labor under Harold Wilson in 1969-70.
Ministers are also trying to improve protections for tenants, for example by banning no-fault evictions. However, experts fear the proposals could end up fueling rent inflation by forcing landlords to sell due to higher costs.
Poll
Sa ju bindin programet ekonomike të partive për zgjedhjet e 11 majit 2025?
-
Janë të detajuara dhe të realizueshme
-
Kanë ide të mira, por mungojnë detajet e zbatimit
-
Janë premtime të parealizueshme
How many payments were made through POS terminals? - The number of points increases by 8%, but businesses continue not to use it
The number of POS terminals in Albania is growing at a slower pace in recent months. According to data from the Bank of Albania, in the July-September period......
Integrated system for social services - 226 million ALL for more efficient services for citizens
The National Information Society Agency (AKSHI) has announced the opening of the tender for the improvement and integration of information management systems......
No more Russian oil! - Czechia, on track to end supplies by July 2025
The Czech Republic expects to end its consumption of Russian oil in July next year after an upgrade to a transalpine pipeline allows it to increase shipments......
Bypass Sarandë, the winner is announced for the design - The segment about 3.5 km, must connect the Sixth Neck with the national road
With an offer of 29 million ALL, the Albanian Road Authority has announced the winning company that will carry out the study and design of the Saranda......
The week starts in the red - Dollar, Franc and Pound weaken!
The American dollar started this week negatively, losing points from last week as it was bought today at 93.4 Lek and sold at 94.5 Lek according to the local......
Albania 2030, Rama lures English immigrants with the 'Package of Mountains': I tell you with all my mouth, invest!
Prime Minister Edi Rama held a meeting with Albanian emigrants in Great Britain at noon on Sunday. The hall "The Cooper Box, Queen Elizabeth Olympic Parc",......
Trumponomics' biggest losers - Europe, China and Mexico will be hit hardest by Trump's tariffs
(The Economist) In government cabinets, in boardroom discussions or in diplomatic missions, it has been a topic of discussion that has prevailed over the......
Don't worry, I'm home!', Rama meeting with Albanian immigrants in London
Prime Minister Edi Rama holds a meeting with Albanian immigrants in Great Britain. The hall "The Cooper Box, Queen Elizabeth Olympic Parc", was dressed in......
