Bank of Mum and Dad

May 4, 2016

Legal & General, the FTSE100 financial services group and Cebr, the economics consultancy, yesterday  published a new report into the role the Bank of Mum and Dad play in helping their children get on, or move up the property ladder. The research shows the Bank of Mum and Dad will lend over £5 billion, providing deposits for over 300,000 mortgages, purchasing homes worth £77 billion in 2016. see more

Nigel Wilson, CEO of Legal & General, said: “The Bank of Mum and Dad plays an increasingly vital role in helping young people take their early steps on the housing ladder.

“But the generosity being displayed by UK families doesn’t make up for intergenerational unfairness – younger people today don’t have the advantages the baby-boomers had, including cheap housing that delivered windfall gains. People will always want to help family members – it is a natural thing to do.  Relying so heavily on the Bank of Mum and Dad however risks increasing inequality as many young people today are not lucky enough to be able to access parental support when buying a home, or can’t afford to buy even with parental help.

“We have a supply-side problem in housing – we are simply not building enough houses. We need to build more, especially as the Bank of Mum and Dad could soon start to experience a funding crisis of its own.”

To read the full report at the Cebr website click here

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

Money and Credit – November 2025

Key points: Net borrowing of mortgage debt by individuals increased to £4.5 billion in November, following a decrease of £1.0 billion to £4.2 billion in October. In November, net mortgage approvals for house purchase fell by 500 to 64,500. By contrast, approvals for remortgaging rose by 3,200 to 36,600 in November. Net borrowing of consumer…
Read More →
to let sign 2025
Breaking News

Seasonal slowdown sees rental demand soften in Q4

The latest research from Dwelly has revealed that just a handful of areas saw tenant demand for rental homes climb during Q4, as the wider market succumbed to its usual seasonal slowdown ahead of the Christmas break. Dwelly analysed rental market stock across England, looking at the proportion of rental properties listed on the market…
Read More →
Breaking News

Prime London buyer demand climbs in Q4

The latest Prime London Demand Index by London lettings and estate agent, Benham and Reeves, reveals that buyer demand across London’s most prestigious neighbourhoods climbed by 1.2% during Q4, driven by sharp increases across Chiswick, Regents Park and Maida Vale. The Prime London Demand Index by Benham and Reeves monitors demand for London’s most expensive…
Read More →
Breaking News

Top tips to make your home winter-ready for a successful sale

Following the festive period, many people turn their thoughts and attention to potential new year property aspirations. Traditionally, record numbers of people jump onto property-related websites after Christmas and into the New Year, so it’s a great time to consider marketing your home, knowing there are tens of thousands of extra people seriously considering a…
Read More →
Breaking News

Propertymark Annual Sales Price Report 2025

With housing being a fundamental need and playing a vital role in the UK economy, a strong housing market is a vital factor, this report examines the strength of the housing market and looks at average prices year on year. Headline figures The entire of 2024 vs 2025 The number of properties placed for sale…
Read More →
Breaking News

Lloyds reveals its 2025 housing hot spots

Plymouth property prices up +12.6% over the past year   Hull joins the top 10, up +6.5%, and fresh from being named a 2026 ‘Best of the World’ destination by National Geographic   Value of a London home dipped slightly (-0.1%) but remain the most expensive overall, averaging £574,514   Amanda Bryden, Head of Mortgages…
Read More →