According to a new study by Generation Home, parents are twice as likely to offer their adult children a large sum of money if they knew it would be protected by a formal loan, to be repaid over an agreed period of time. .
The research was carried out by Censuswide research in April among 1,003 parents of children aged 18-34 in the UK.
When asked how much parents would be willing to give, 10% said between £10,000 and £50,000, but that almost doubled to 19% if they knew the loan was going to be repaid.
Parents said they would part with an average of £13,088 to help support their children’s future savings goals, but if the money was guaranteed to be treated as a loan, that amount would rise to £22,093 .
The average house price in the UK is now around £277,000 and full-time workers can expect to spend at least 9.1 times their annual earnings to be able to afford a house.
Parents’ savings are also under pressure from routine bills and the cost of living crisis, with 37 per cent open to offering financial support but simply unable to do so, the new research found. .
However, just under half of the parents surveyed would give priority to the deposit for their child’s first home, compared to 10% for higher education, a marriage or 7% for a car.
Overall, 67% of parents said they would help financially and 26% would be happy to give money with no agreement on how it would be spent.
Generation Home says the results show parents and young adults are increasingly realizing that major financial milestones – like buying a first home – won’t be possible without adequate financial support.
Generation Home co-founder Sophia Guy-White said: “With so many factors stacked against first-time buyers against the backdrop of an even tougher financial climate this year, it’s easy to think the gates of the market real estate are completely closed.