According to recent research, there are now more people aged 45 and over helping their offspring buy their own home, with parents in London providing more financial assistance than in other parts of the country.
Parents in London are handing over almost double the amount given by those in the rest of the UK. The report, conducted by Aviva, indicates that the amount of financial assistance given to grandchildren and children varies according to where they live.
The amounts range from £20,000 to £36,000. The national average amount given to help a child buy a home is £25,090, according to the Aviva study. However, when the figures are broken down into regions, the Capital is giving offspring far more. London also has the highest average house prices in the UK, with the average house price standing at £600,000.
Parents living in the North East and East Midlands were closely behind London parents, giving £27,950 and £32,500 respectively. The parents who gave the least financial assistance live in the East of England.
The financial help was funded in various ways, with 71% using investments and savings, while 10% moved into a smaller home so they could help their offspring. According to the study, parents in Yorkshire and Humberside are most likely to use their savings to help family members to buy a home. Nearly 40% of parents said that although they wanted to help their children financially, they couldn’t afford to do so.
If you are considering downsizing to help family, speak to a CeMAP qualified advisor who will be able to help you find the most beneficial mortgage deal.
