Parents buy-to-let to help their children onto the property ladder

25 June 2007
An increasing number of people are investing in buy-to-let properties in order to assist their children when the time comes for them to get on the property ladder, research from Birmingham Midshires has revealed.

There are currently two million Britons looking at the buy-to-let market with intentions of investing during the next six months; 22% of these will be doing do as a means of generating enough capital to help provide for their children’s future.

Due to the strong prices of property in recent months, almost half of the 2,438 people surveyed are being encouraged to favour property over the stock market. Nineteen per cent have done so because of property’s tax-efficient nature as a method of investment. A further nineteen per cent intend to capitalize on the current market strength by switching to a career in property development. This figure rises to 31% amongst those 55 and older.

Tim Hague, managing director of Birmingham Midshires, said: “A solid property market, coupled with changing family demographics, has resulted in more and more Brits turning to property in order to benefit from the long-term capital returns.”

However, he also urges caution for those abandoning more traditional methods of investment. “While the buy-to-let market continues to perform well” he added, “it is important that investors do not put all their eggs in one basket.”

Learn more about the features of a buy to let mortgage