New research by Nationwide Building Society indicates that over half of parents who charge rent to their adult children living at home are returning some or all of that money to assist with property deposit savings. A survey of more than 2,000 parents found that 54% utilise rent payments as a method to help their children achieve homeownership.
On average, parents charge £303 per month in rent, which amounts to £3,636 annually. This figure varies regionally, with parents in Greater London charging an average of £415 per month, while those in Yorkshire and The Humber charge £187 per month.
The study also revealed that 61% of parents surveyed have increased rent charges to their adult children. Additionally, 21% of parents have a formal rent arrangement in place, with a further 14% considering one. Parents in Greater London are most likely to have formal agreements, at 47%.
Carlo Pileggi, Nationwide’s Head of Mortgage Products, noted that the research highlights how many parents are helping their children build a deposit amidst ongoing challenges in saving for a home. Ian Harris, President of NAEA Propertymark, commented that affordability pressures mean buyers are often planning for longer and saving more.