Six in ten parents can afford to help their offspring buy a home

Our research for Post Office Money has revealed that 6 in 10 (59%) parents can afford to make a financial contribution to help their children buy their first home, however only 5% can afford the whole deposit. Additionally, 61% of parents are helping their children financially in other ways, such as providing rent free accommodation and free childcare.

Four in five (81%) parents are more than happy to provide financial support to their children if they can. However, not all parents can afford to provide their children with financial help, with 7% of parents saying that they felt guilty that they were not able to provide this support.

Given that 95% of parents are unable to provide a full deposit and that young people can only afford to save 7% of their income towards a deposit, the average deposit could take 18 years to save for. As a result, 43% of young people who don’t think they’ll be able to afford their own home feel this way because they fear they won’t be able to afford a deposit in the near future.

However, some young people remain optimistic and 58% of those who aspire to own their own home are planning to use their personal savings, and a further 22% are hoping for some form of financial assistance from their family.

Read more about this research here.