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Decline of the so called ‘Bank of Mum and Dad’?

According to research, younger and older family members are redistributing the financial burden by providing support to one another. In this day and age with changing pressures on families such as children staying at home well into adulthood and older relatives moving back in, we are seeing a shift from personal finance to family finance, with relatives clubbing together to help each other manage their finances.
It may be that this shift may cause the decline of the so called ‘Bank of Mum and Dad’. However, it is still acknowledged that parents are the most likely to provide financial support to younger family members.
Looking at how the level of support was distributed throughout families, 46% of parents and grandparents stated that they had given money to their daughters and sons. However, 20% also stated that their parents had received monetary help from them, with one in ten claiming that they had assisted siblings financially.
Where children were concerned, over half (55%) of those over 18 who were living at home stated that they will contribute to their parents’ bills. The figures also indicated that 10% of families would split living expenses between all family members equally.
Other research has revealed the number of first-time buyers and investors using gifted deposits has fallen by almost 5% and 3% respectively, in the last two years. In fact, almost 90% of all gifted deposits are now used by second-steppers and middle-movers. Overall use of gifted deposits has stabilised following a peak in the run up to Stamp Duty Land Tax (SDLT) changes.

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Palmyra Square South
Warrington, Cheshire
WA1 1BL 01925 444422
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