29 August 2007A third of parents have said that they would feel guilty if they were not able to provide financial assistance to their children when it comes to buying a property, new research shows, with the typical parent now giving their offspring more than £20,000 for that purpose.
This figure is up by more than £3,600 on figures from 2006, according to the Alliance & Leicester study, though just one in five first-time buyers say they have asked or even plan to ask for such help.
Ten per cent of parents said that they were even considering investing in a buy-to-let property which their children could then rent from them until they were ready to buy it.
"Whatever the motivation, many parents feel a strong urge to support their children financially when buying their first home," commented Alliance & Leicester director of mortgages Stephen Leonard.
"However parents should also remember that as well as helping their son or daughter to fly the nest, investing in a property through a buy to let mortgage, or loaning the money could benefit their own future financial security as well," Mr Leonard added.
A recent study found that Brighton is currently the most popular location for buy-to-let property investment in the UK.
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