6 Nov 2013

Rising rents tip bank of mum and dad over the edge

Britain’s housing crisis is putting parents under more financial strain than ever. Against a background of soaring housing costs, parents are forking out just so their struggling adult children can rent a home, a new survey reveals.

A ComRes poll of parents for the National Housing Federation shows that in the UK there are now nearly as many parents paying some of their adult children’s rent as there are helping them to buy a home. Adult children are now also asking parents for money towards rental deposits as the severe shortage of housing pushes rents up. 

Private rents in England are now an average of £629 a month and are predicted to rocket 44% by 2020 to £906 a month. This raises the prospect of parents having to dip into their savings and delay their retirement plans just so their children can live independently. 

In the South West private rents are now an average of £610 a month and are predicted to rocket 49% by 2020 to £906 a month. 

The survey found that:

  • 13% of parents help with money towards rent
  • 9% of parents help with money towards a deposit to rent a property
  • 16% of parents help with money towards a deposit to buy a property
  • 7% of parents help money towards mortgage repayments

With thousands locked out of home ownership and struggling with rents, the Yes to Homes campaign is asking people and families to speak up and say they want more homes they can afford. 

National Housing Federation Chief Executive David Orr said:  “The housing crisis is having a domino effect through family generations because young people in decent jobs are relying on their parents just to rent a home – never mind save for a mortgage deposit. This is putting pressure on parents who are picking up the tab because for decades we haven’t built enough homes.

“We need to start building quality homes for the right prices in the right places – otherwise rents will continue rising, young people will continue struggling and the Bank of Mum and Dad will eventually go bust.

“But families around the country don’t have to wait for the Government to make this change. If people reach out to their councillors and tell them about their housing concerns, communities can get the homes they desperately need.” 

For more information on the Yes to Homes campaign and how communities can get their voices heard, visit www.yestohomes.co.uk