According to new research, the property market in London and the South East is being assisted by the so-called bank of mum and dad, and is worth an estimated £103 billion.
The study from YouGov and real estate firm JLL also estimates that money from the bank of mum and dad, plus inheritances, could assist in the purchase of more than £1 trillion worth of homes in the UK overall.
The poll also highlighted that:
- between a quarter and half of all home purchases in London and South East England could be assisted in this way with the average pot coming in at £55,300;
- the average hand out per child in the London and South East region is £24,800;
- 70% of parents say all monies passed down will be a pure gift;
- 26% of parents will use their own inheritances to help their children onto the housing ladder.
Property Wire reports that a JLL spokesman said: “We all know that the bank of mum and dad has helped many beneficiaries on to the housing ladder but the numbers revealed in this research are astounding.
“The bank of mum and dad in London and South East England alone amounts to more than £100 billion. If this money is used as a 10% deposit it could help fund more than £1 trillion of home purchases”.
He added that: “With the bank of mum and dad support likely to push house prices even higher when affordability is already stretched, it means that it will become even more important for the privileged parts of society, but inevitably leaving other households further behind”.