THE ‘bank of mum and dad’ is predicted to hand out £6.3billion worth of loans this year — making it the equivalent to the UK’s 11th biggest mortgage lender.
Parents are also becoming more generous, doling out £24,100 on average to give sons and daughters a leg up on to the housing ladder, Legal and General and the Centre for Economics and Business Research (Cebr) found. This is more than £6,000 higher than the £18,000 average last year.
London had the highest average loan of £31,000 this year, followed by £30,600 in Wales, £29,700 in the south-west and £29,000 in the south-east. The lowest is West Midlands’ £13,700.
But despite loan sizes rising, parents are expected to fund nearly a fifth fewer purchases this year than in 2018, amid lower house sales volumes.
Mums and dads are expected to help children with 259,400 property purchases worth nearly £70billion this year — well down on the 316,600 deals last year, but still nearly one in five (19 per cent) of mortgage transactions.
While 62 per cent of under-35s need parental support, more than a fifth (22 per cent) of people aged 45 to 54 and seven per cent of the over-55s had a leg-up to buy their latest home.
Some 35 per cent of prospective buyers plan to rely on financial support from relatives in the next five years.
Nigel Wilson, chief executive of Legal and General, said: ‘The bank of mum and dad continues to be the ‘iceberg’ mortgage lender beneath the surface of our housing market — all but invisible yet exerting a massive influence, funding purchases and helping people to defy the economics of affordability.’
The research involved more than 1,700 borrowers and over 2,000 adults who had lent money as well as Cebr’s forecasts, which rely on HM Revenue and Customs property transactions figures.
I won’t be back… Arnie’s pressing PPI limit warning
TIME is running out for Arnold Schwarzenegger as he reminds people they have just over two months left to complain about PPI.
The Financial Conduct Authority brought back Arnie’s animatronic head for the last time and placed it in a hydraulic press in an advert campaign. As the August 29 deadline for complaints nears, his fate will be revealed.
Payment protection insurance, designed to cover repayments for people who can’t make them because they have lost their job or are ill, was widely mis-sold. A total of £35.3billion has been paid back since 2011, the FCA said, with £334.3million paid in April this year.
Up to 64million PPI policies were sold, most between 1990 and 2010. You can get help to claim from the FCA, MoneySavingExpert.com, the Financial Ombudsman Service and Which?
Brexit adds to work fears among Britons
WORKERS and jobseekers are getting less confident about their prospects — and Brexit isn’t helping, a survey claims.
Confidence in the employment market has fallen in recent months, according to a study of almost 9,000 adults by jobs site Monster and the Centre for Economics and Business Research. Workers in Wales and the north east of England are most uncertain.
Louise Goodman, of Monster, said: ‘It’s worrying to see workers’ confidence in the labour market dropping and with Brexit on the horizon this is only set to get worse.’
■ TOTTENHAM Hotspur’s new £1billion stadium will incur the highest business rates of any football ground in the UK. The north London club will pay £3.7million this year, according to the Altus Group.
■ MORE than one in seven cocktails sold in bars, pubs, restaurants and clubs is a Pornstar Martini, research shows. Mojitos take second place in a booming market worth £587million a year, found analysts CGA.
■ CAR dealers will knock more than a fifth off prices of some new models if customers haggle. The top bargain offered to What Car? secret shoppers was 22.6 per cent (nearly £6,000) off a £25,495 VW Passat GTE.
■ DIXONS Carphone, owners of Currys PC World and Carphone Warehouse, is this week expected to announce pre-tax profits in the year to April 30 fell 22 per cent to £299million, blaming a drop in sales of mobile phone contracts.
■ SUPERDRUG has seen annual profits fall, despite a sales boost from last year’s heatwave. Amid ‘challenging times’ it reported a pre-tax profit of £88.3million, compared with £92.9million in 2017.