Parents "pay" children to leave home
18 July 2003
Parents are handing over thousands of pounds to their grown-up children to encourage them to leave home and take their first steps on the property ladder.
According to research from Skipton Building Society, parents are on average giving their children £8,000 - an average £5,000 to help their child buy a home and a further £3,000 for their child's upkeep.
The building society highlights that parents are having to give their children large amounts of money because the price of property has meant that first time buyers are having great difficulties in entering the property market.
Jennifer Holloway, head of media relations at Skipton Building Society, said: "There are a number of reasons why so many grown-up children are still living at home, including the fact that the parents may want them to stay. But a big issue is that rising house prices mean that many young people can't afford to leave the family home."
More than a third of grown up children were found not to have left home because they like the comfort of living with their parents too much. Thirty per cent of grown-up children said that they had not left home because of the high price of property.
Ms Holloway continued, "Saving for a deposit can be difficult, but when only a third of parents ask for their adult children to make a contribution to household bills or to pay rent, and with meals being cooked and laundry being done, staying at home must seem like the sensible option.
"Every parent wants to help their child, but it seems that some will go to great lengths to help them fly the nest."
To encourage grown-up children to leave home, 18 per cent of parents have dipped into their child's inheritance whilst one in five are willing to go into the red to find the extra money.
The Skipton Building Society's research showed that close to a quarter (23 per cent) of parents have forgone their annual holiday and one in 10 have missed debt repayments in order to hand over cash for children to go it alone.
The survey was carried out on 534 parents across the UK with children aged 18 and over.