Warning that doors will soon close on Bank of Mum and Dad

By Lauren Burns

A new report shows that many parents are giving up as much as two thirds of their savings in order to help their children get on the property ladder, but warns that the bank of Mum and Dad won't be able to prop up the housing market for much longer.

The report by Legal & General suggests around 300,000 adult children in Northern Ireland and the rest of the UK received a gift of money from their parents to help them buy a house. The average amount being lent or gifted by parents is around £16,000. Over half (57 per cent) of the assistance provided by parents takes the form of a gift, while 18 per cent are interest-free loans, and only 5 per cent were loans charging interest.

However, the report finds that the capacity of parents to help their children with a property purchase will reduce over the next 10 years, and that the bank of Mum and Dad can no longer be counted on to keep the housing market afloat in the face of escalating property prices.

Many parents previously opted to be named on the mortgage in order to help their adult children. However, the stamp duty changes brought in at the start of April means that the tax bill on the purchase could rise by thousands of pounds if an existing home owner co-purchases a new property.

If you require legal advice from a property conveyancing solicitor in Northern Ireland contact Wilson Nesbitt in Belfast or Bangor by calling 0800 840 9290.