Property News · May 7, 2017

The megabank of Mum and Dad has a toxic effect on all it touches | Rowan Moore


Naturally parents want to help their children but this skews a housing market in desperate need of reformA deed of trust, the Daily Telegraph tells us, is a useful device for parents who want to give or lend their children capital to help them own a house. It should really be called a deed of mistrust, as its aim is to ensure that their children’s spouses, if their marriage should hit the rocks, can’t get away with a chunk of their property. It’s a sort of prenuptial agreement, in other words, migrated from the worlds of celebrities and the super-rich to moderately well-off Telegraph readers trying to do the best with their possessions and for their children.It is one of a few unattractive side-effects of the phenomenon known as the Bank of Mum and Dad. As announced last week by Legal & General and the economics consultancy Cebr, lending by parents to their children to buy homes totals £6.5bn, up from £5bn in the previous year, which makes it the ninth largest source of such lending in the country. It is ahead of the Clydesdale Bank and about equal with the Yorkshire Building Society. And these figures are only for loans, not outright gifts. Continue reading…

Source : theguardian.com
Read more…The megabank of Mum and Dad has a toxic effect on all it touches | Rowan Moore

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