With house prices rising faster than salaries, the younger generation face having to find a much bigger multiple of their income to buy a home, compared to their baby-boomer parents.
Couple this with rising rent payments that stifle the ability to raise a deposit and you can see why ‘Generation Rent’ is a growing population and more kids are looking to their parents for help.
In the UK, 730,000 parents rent properties to their children and a further 1.4m landlords have said they would be willing to take their children as tenants.
As both the cost of renting and buying a property increases, renting from a parent should help prospective first-time buyers get on the property ladder sooner rather than later. Especially given that just 5% of parents charge the market rate, 30% allow their children to pay whatever they can afford and 12% even go so far as to pay the bills for the property.
Buy to Let
If you have a property you’re considering renting to your children, or you’re thinking of Buying to Let to help out your kids, make sure you consider all the costs involved before you take the leap.
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If you need mortgage advice, or you’re looking to help your children onto the property ladder, please talk to us.
Your home may be repossessed if you do not keep up repayments on your mortgage