The Bank of Mum and Dad will spend £2.3bn this year helping kids pay the rent

 
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Young people are struggling to pay the rent without parental help (Source: Getty)

Young people are relying on parental handouts to pay their rent as the bill to the "Bank of Mum and Dad" for this year approaches £2.3bn.

Nine per cent of all renters across the UK are reliant on some form of help from their parents, according to research released today by Legal & General and the Centre for Economics and Business Research (Cebr).

The so-called Bank of Mum and Dad already plays a huge role in the property sales market with parents lending £75bn a year, the equivalent of the UK's ninth largest mortgage provider.

But today's research shows that younger generations are reliant on family help with the rent as well.

"The lack of affordable housing, low wage growth relative to inflation and burdens of student debt mean that many kids can’t even rent somewhere without significant contributions from their family," explained Dan Batterton, fund manager of Build to Rent at Legal and General.

"Parents want to help their kids get on in life, and the Bank of Mum and Dad is a testament to their generosity, but it is also a symptom of our broken housing market."

Read more: Almost a third of families are now living in rented accommodation

The total contribution this year is expected to tot up to £2.3bn, while parents have already helped to settle the rent on 460,000 properties so far this year.

Young Londoners needed the most help, as the Bank of Mum and Dad poured £626m into the capital.

"We need more professional, affordable tenures and more choice for renters," concluded Batterton.

"We need to build more homes for the young, old and families alike – more quickly and cost effectively. Renters are currently facing not only expensive rental payments but moving costs, agent fees and deposits which are reducing flexibility – something that should be a benefit of renting."

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