‘Bank Of Mum and Dad’ To Hand Over £6.5 Billion To Children For Property In 2017, Report Claims
News that the ‘Bank Of Mum and Dad’ will pump £6.5 billion into property transactions this year has reignited debate over Britain’s “broken” housing market.
Research from Legal & General and Cebr showed that parents will be involved in 26% of all property transactions in 2017, contributing towards more than 298,000 mortgages and helping to purchase homes worth £75 billion.
The findings put the ‘Bank of Mum and Dad’ on par with the Yorkshire Building Society, the ninth largest mortgage lender in the UK, the Press Association reported.
But they have infuriated many people, with some criticising the current system for barring social mobility.
Parents will be involved in more than a quarter of property transactions in 2017
Responding to the report, Labour MP David Lammy said the “broken, deeply unfair housing market” was “entrenching inequality”.
The former higher education minister tweeted: “What about those without an inheritance or without wealthy parents?
“Concept of ‘affordable’ homes has lost all meaning across the country.”
According to the report, millennials will be the biggest recipients of the cash, with 79% of the money going to people under 30.
But dozens of young people pointed out on social media today that their parents can’t afford to give them money for a deposit:
“Bank of Mum and Dad” really annoys me. Some of us don’t have that option, at all! We have to work harder and longer. We know real value.
— Helen Lambert (@Heeerins) May 2, 2017
I cannot rely on the Bank of Mum and Dad, due to being an orphan and all. Guess I shall just resign myself to mediocre living standards.
— Jay Thomas (@ThisJayThomas) May 2, 2017
(Closest I have to a Bank of Mum and Dad is the huge jar of pennies my Dad seems to be keeping to use as a weapon in the revolution)
— Rebecca Winson (@rebeccawinson) May 2, 2017
Got nowt from the bank of mum and dad. Only thing my parents gave me is an inability to throw away a carrier bag in case it might be useful.
— joe (@mutablejoe) May 2, 2017
“Hi. I’m 30 and have a decent job, but priced out of where I live. I’d like to make a withdrawal from the Bank of Mum and Dad please” pic.twitter.com/tQtYvR48hK
— Vonny Moyes (@vonny_bravo) May 2, 2017
Like many my age, I had access to the bank of Mum and Dad. Sadly, all I got were some pens they’d forgotten to chain down.
— Oonagh (@Okeating) May 2, 2017
Legal & General chief executive Nigel Wilson said: “The Bank of Mum and Dad continues to grow in importance in helping young people take their early steps on to the housing ladder.
“The inter-generational inequality that creates the demand for Bank of Mum and Dad funding continues to widen – younger people today don’t have the same opportunities that the baby-boomers had, including affordable housing, defined benefit pensions and free university education.
“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.”
He said the UK was experiencing a “supply-side crisis” in housing, adding: “We need to build more homes for the young, old and families alike – more quickly and cost effectively.”
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