The Bank of Mum and Dad is now subsidising their offspring’s housing renting costs to the tune of £1bn a year, that’s the claim of Shelter, the homelessness charity.
Shelter claim their research shows that in the UK some 450,000 adults are being helped out with rent payments by their parents. The findings are from a study conducted by Shelter with The Observer newspaper.
The study found that one in 20 have borrowed or received money from their parents during the last year to help with their property costs.
Campbell Robb, Shelter’s chief executive, said:
“With housing costs sky high it’s not surprising that the Bank of Mum and Dad is no longer just relied on for help with buying a home, but renting costs too.
“We know that the majority of private renters are forking out huge proportions of their income to cover the rent each month, and that’s not even taking into account the extortionate deposits and fees that need to be paid.
“For those who aren’t lucky enough to receive help from parents, expensive and unstable private renting leaves many struggling.
“We hear from people every day who simply can’t keep up with rising rents on where to live.”
Shelter’s research also found that the younger people are most reliant on their parents, with 11% of those aged 18-24, and 8% of those aged 25-34, receiving financial support.
Shelter estimates that around £850m a year is provided for rent with another £150m a year on moving costs.
Bank of Mum and Dad gives £1bn a year https://t.co/JJHewhyfbJ
— LandlordZONE (@LandlordZONE) July 22, 2016