First-time buyers today must find, on average, a deposit equal to a year’s salary. With almost half relying on parental assistance, the ‘Bank of Mum and Dad’ has never been so popular. House price affordability and the phasing out of the Help to Buy scheme make this trend set to continue.
It is natural to want to help your children onto the property ladder if finances permit. However, if you are considering making a financial contribution, get the right professional advice first and ensure the agreement is documented to reduce the risk of problems arising later.
Plan for the long term
If you have built up savings, you may prefer to help your child now rather than pass on those assets through inheritance, but it is important to make sure you will still have enough left…