Bank of mum and dad set to dry up as a third of parents live in rented homes

Alys Key
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A third of young families are making do with rented accommodation (Source: Getty)

Nearly a third (29 per cent) of parents in the UK are living in rented accommodation as they struggle to get on the housing ladder, City A.M. can reveal.

New figures from peer-to-peer platform Kuflink suggest that more than 3m British parents are using rented flats and houses as their family home.

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In a survey of more than 2,000 people, it was revealed that more than a third of UK parents (37 per cent) hope to buy their own home in the next five years, but 40 per cent said they would not be able to do it alone.

Millennials, some of whom are now parents themselves, also make up a large portion of those unable to buy a home, even though this generation has the highest proportion of would-be home-owners. Half (49 per cent) of those aged 18 to 34 say they would like to buy a property in the next five years.

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Confidence in the government to help renters get on the property ladder was revealed to be low. Three quarters of parents said they had no confidence in the government changing the situation. The proportion was even higher among all millennials, 80 per cent of whom didn't think the current government would make it easier for them to enter the market.

The findings suggest an end in future to the so-called bank of mum and dad, which lends the same amount as the UK's ninth largest mortgage provider as younger parents no longer have funds for their own houses let alone for their children's. There are already signs that family lending is on the decline, as 52 per cent of those with kids said their own parents were not able to give any financial assistance.

Kuflink chief executive Tarlochan Garcha said: “This research sheds light on just how challenging it is for the next generation of prospective investors jumping on the real estate market, unable to rely on their own savings or the finances of their parents, to secure a home for their families’ future."

Read more: Housebuilders are hooked on help to buy

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