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Financial Blog

The parent landlord trend continues to grow

Exploring the growing trend of parent landlords.

As the younger generation struggle towards home ownership we are seeing a marked increase in the number of parents buying and renting second properties to their children. The average first time buyer is in their mid-thirties before taking their first step on to the property ladder which has led to more than 1.4 million UK parents saying they would be willing to take on their children as tenants, and 730,000 already do (Research from Post Office Mortgages).

parent landlords sussexThe reasons are varied but the clear majority (27%) of landlord parents say they want to provide a safe home for their children.

The second most popular priority is to provide financial assistance with 26% of landlord parents saying they want to provide a helping hand financially, followed closely by 24% who want to help children to save money. In fact, only 5% of landlord parents charge the going rental rate for the property and 30% ask their children to just pay what they can afford. 12% even pay towards their children’s bills too!
Parents do get something out of it though and 25% admit they purchased the second property primarily as an investment.

Interestingly 24% of parent landlords say that their main objective is to keep their children close by and amusingly 21% want to avoid their adult children living at home.

If you are considering a second property purchase contact us for a free no obligation review of your current situation and helpful advice on getting the best deal.

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