1st April 2016
The bank of mum and dad is not just helping adult children on to the property ladder but also providing funds to renovate.
Research by the Post Office Money shows children who have flown the nest remain reliant upon their parents and even grandparents to pay for home improvements.
The UK is a nation of DIY-ers, spending £30 billion a year on home and DIY improvements but after shelling out for a deposit and house-buying costs, one in five homeowners have turned to parents and grandparents for help with home improvements.
A total of 14% of parents and grandparents have helped their children at the expense of making improvements in their own home.
Henk Van Hulle, director of Post Office Money, said the pension freedoms introduced last year, which allow over-55s access to their pension as cash, has helped to fuel the transfer of money between generations.
‘Parents are now going to even further lengths to support their children financially, not only by providing help when they’re purchasing their first home, but also paying for their home improvements. Although parents may feel obliged to continue supporting their children – even once they have moved out – they too will have financial goals they aspire to.’
He added: ‘Following last year’s pension reforms, those aged 55 and above have access to a lump sum of their savings. While this might provide them with the opportunity to provide further support for children and grandchildren, it is important they continue to think about their own financial stability.’