More than half of parents are giving rent back to their adult children who are living at home to help them get on the property ladder. Nationwide research shows 54% of parents return some or all of the rent paid by their adult children to help them save for a deposit.
Living at home to save
Just over a third (34%) say their children are living at home specifically to save up enough funds to buy their first property - but 45% of parents feel like a landlord to their own child. More than two in five (45%) parents have waived rent payments for their child once in the past year, while more than half (52%) say they’ve let children off rent payments between two and six times in the last year.
Average rent charged
Parents are charging an average of £303 per month in rent to their kids for living at home – equivalent to more than £3,600 a year. However, this amount does vary considerably across the country. Parents in Greater London charge the most at an average of £415 a month, or £4,980 a year - compared with £187 a month, £2,244 a year, for people in Yorkshire and The Humber.
More than six in 10 parents (61%) have increased the rent they charge their adult child, while only one in five (21%) parents have a formal arrangement in place - and a further 14% say they would consider one. The figures were released as households are dealing with rising fixed mortgage rates. According to financial information website Moneyfacts, the average two-year fixed deal is 5.92%. The average five-year fixed is 5.94%.
Nationwide's response
Carlo Pileggi, Nationwide’s Head of Mortgage Products, said: "Behind many first-time buyer success stories are parents quietly helping along the way and it appears they are using new tactics to support their children."
"As saving for a home remains as challenging as ever, our research shows many of Britain’s parents are using rent payments as a way to help their children build a deposit, turning the family home and time spent living at home into a stepping stone towards homeownership."
"However, the findings also serve as a reminder that many aspiring first-time buyers do not have access to family support and continue to face significant challenges in saving for a deposit."
Regional rent variations
The average amount of rent paid by children to parents each month varies by region: Greater London - £414.97, Northern Ireland - £397.39, East of England - £386.34, Wales - £319.95, North East - £268.73, South East - £268.10, Scotland - £260.56, South West - £256.19, West Midlands - £239.89, North West - £230.25, East Midlands - £211.40, and Yorkshire and the Humber - £187.08.
