Rising London rents tipping bank of mum and dad over the edge
Britain’s housing crisis is putting parents under more financial strain than ever in London.
Against a background of soaring housing costs, parents are forking out just so their struggling adult children can rent a home, a new survey reveals.
Private rents in London are now an average of £1242 a month and are predicted to rocket 40% by 2020 to £1737 a month2. This raises the prospect of parents having to dip into their savings and delay their retirement plans just so their children can live independently.
A ComRes poll of parents1 for the National Housing Federation shows that in London there are more parents paying some of their adult children’s rent than there are helping them to buy a home. Adult children are now also asking parents for money towards rental deposits as the severe shortage of housing pushes rents up.
The survey found that, of parents who provide some form of financial help to their adult children living away from home, around a fifth help with money towards rent, while smaller proportions help with money towards a deposit to buy or rent a property, or mortgage repayments.
With thousands locked out of home ownership and struggling with rents, the Yes to Homes campaign is asking people and families to speak up and say they want more homes they can afford.
If the projected regional increase occurs equally across all areas, Kensington and Chelsea would see the steepest increase in rental prices in London to 2020. The 10 worst affected areas would be:
1. Kensington and Chelsea – up £993 a month* by 2020 to £3,484
2. Westminster – up £882 a month* by 2020 to £3,097
3. Camden – up £687 a month* by 2020 to £2,410
4. City of London – up £673 a month* by 2020 to £2,362
5. Hammersmith & Fulham – up £617 a month* by 2020 to £2,165
6. Islington – up £569 a month* by 2020 to £1,998
7. Wandsworth – up £523 a month* by 2020 to £1,834
8. Tower Hamlets – up £504 a month* by 2020 to £1,767
9. Barnet – up £499 a month* by 2020 to £1,753
10. Richmond upon Thames – up £484 a month* by 2020 to £1,698
*based on four weeks’ rent
National Housing Federation External Affairs Manager for London, Michelle Smith, said:
"The housing crisis in London is having a domino effect through family generations because young people in decent jobs are relying on their parents just to rent a home – never mind save for a mortgage deposit. This is putting pressure on parents who are picking up the tab because for decades we haven’t built enough homes.
"We need to start building quality homes for the right prices in the right places – otherwise rents will continue rising, young people will continue struggling and the Bank of Mum and Dad will eventually go bust.
"But families in London don’t have to wait for the Government to make this change. If people reach out to their councillors and tell them about their housing concerns, communities can get the homes they desperately need."
For more information on the Yes to Homes campaign and how communities can get their voices heard, visit www.yestohomes.co.uk.
To request an interview with a spokesperson or for more information please contact Clare Bevis from the National Housing Federation’s press office on 020 7067 1042 or email@example.com