5th
Oct 2016
Increasing numbers of parents are now renting out their second properties as 'homes' for their children, within relatively easy reach of the parental home for their Sunday roasts.
A leading mortgage provider had commissioned some research of private landlords' renting 'trends', have discovered that approximately 1.4 million landlords are seriously considering to 'house' their children as fee paying tenants in their second properties. Across the UK it is estimated that 730,000 parents are already doing this because of the so called 'generation rent' who are finding it increasingly harder to get into the property market. The main reason why 26% landlord parents are doing this is to give their children some 'breathing space' to save up for a deposit on a future home.
27% of landlord parents are stating that one reason why they are taking this course of action, is to make sure that their children are living in a safe property, whereas 21% wanted to make sure that their offspring finally left the 'family nest'.
Only 5% of parent landlords actually charge their children the market rent, whilst 30% let them pay how much they are able to afford and 12% even cough up for their bills.
John Willcock of the lender said : "As both the cost of renting and buying a property increases, home ownership remains a distant dream for a significant number of today’s younger generations. Our research shows that an increasing number of parents are considering buy to let both as a means of helping their children, and of securing their own financial future.
"By becoming a ‘parent landlord’ they are able to provide this support – without necessarily having to compromise on their own space at home. This not only provides their children with the opportunity to save for the future, but can act as an investment and help with their own long-term financial planning."
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