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Many parents give children up to £10,000 to help buy a home

More than a third of parents in the UK are prepared to give their children up to £10,000 to help them buy a home, according to new research.

A survey carried out by the Halifax found that 79% of parents thought today’s conditions made it more difficult for their children to get on the property market than it was for them when they were young.

A total of 35% of parents with children aged between 18 and 24 either had given them or were willing to give them £10,000 to help with a deposit. A further 18% were willing to raise that figure to £15,000.

Stephen Noakes, Halifax’s commercial director for mortgages, said: "Amounting a deposit has never been easy, and it’s clear from industry figures and our recent research that first timers are continuing to turn to the Bank of Mum and Dad for help."

It is only natural that parents should want to help but they should consider all the legal implications before handing over large sums of money to help their children buy a home, especially if they expect the money to be paid back at some time in the future.

The Law Society recently issued a warning that families could be torn apart if things go wrong.

Law Society, Robert Heslett, said: "If parents are helping their children, they should see a solicitor beforehand in order to draw up a loan agreement.

"It is very important that all parties involved are comfortable with the arrangement and that everyone knows where they stand with regards to paying back the money. While it’s unlikely your children will run off with your savings, handing over a large amount with no legal structure in place is a minefield. It could tear families apart if things went wrong."

The Society stresses that parents should seek legal advice to protect their interests before handing over their life savings.

"A solicitor will also talk through all the options available, and provide alternatives, such as parents acting as loan guarantors or entering into a joint ownership agreement.

"Solicitors are trained experts and are highly experienced in navigating the maze of paper work and dealing with house purchases. Not only will a solicitor offer the best advice and service, they will help to avoid some unforeseen hazards that may occur down the line."

Please contact us if you would like more information about helping your children on to the property ladder, or any aspect of buying and selling a home.

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