Parents paying more to help children

The typical financial contribution made by parents to their children in order help them get onto the housing ladder have risen by more than £3,500 this year, it has been revealed.

Parents now finance their children's homebuying aspirations to the tune of £21,314 on average, up from £17,677 in 2006, according to a study from Alliance & Leicester Mortgages.

Twenty per cent say they have already given money to the children for such purposes, while 22 per cent intend to do so as and when is necessary. The tendency was especially prominent in London, where 52 per cent of parents say they would help their children in such ways.

"It has become increasingly common for parents to offer financial assistance to their children when they come to buy their first home," commented Alliance & Leicester director of mortgages Stephen Leonard.

"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," Mr Leonard added.

The number of mortgage approvals in July fell by 0.7 per cent year-on-year, the British Bankers' Association (BBA) has reported this week.


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