Legal & General and the Centre for Economics & Business Research have found that the Bank of Mum and Dad (BoMaD) will spend £2.3bn in 2017 on their children's rent
The research has revealed that the BoMaD will pay on average £415 every time a rental payment is made and that it helped 9% of renters across the UK with their financial commitments to their landlords.
Dan Batterton, fund manager for build to rent at LGIM Real Assets, said it had been tracking the role of the BoMaD for some time now and found that the intergenerational inequality which created the need for BoMaD funding was continuing to widen.
“The lack of affordable housing, low wage growth relative to inflation and burdens of student debt mean that many kids can’t even rent somewhere without significant contributions from their family.
“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.
“The UK is experiencing a supply-side crisis in the rental sector.
“We need more professional, affordable tenures and more choice for renters.”
