Parental wealth funds house deposits

Nearly two-thirds of parents have helped their children with a deposit for a new home, contributing an average of £32,440.

A report from the British property website, Zoopla says family wealth is increasingly being used to help young people get onto the housing ladder.

The findings reveal that 24 per cent of parents say their children would never have been able to afford to buy a home on their own and the so called "Bank of Mum and Dad" doesn't stop at deposits - 36 per cent help with rent or mortgage payments as well.

A staggering 64% of parents whose grown-up children own a home have given them money to help them onto the property ladder and a further 10 per cent of parents said that while they did not contribute to their children's house deposit themselves, other relatives did.

The Zoopla report says some parents went further, with 14 per cent giving their children more than £50,000. Meanwhile, 11 per cent of parents paid the entire deposit for a new home and 4 per cent bought a home for their offspring mortgage-free.

The research was carried out among Zoopla users, nearly 1,100 of whom were parents of grown-up children.

These finding are germane as the past two years has given many an opportunity to contemplate on estate planning and wealth transfer. The ILS World private client team has been supporting international families for more than 30 years and recent conversations have included the important role of companies and structures to hold and protect assets.

Read the full Zoopla report here

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