THANKS MUM AND DAD
The so-called bank of mum and dad will help fund property purchases worth about £75bn in 2017, the report says, including deposits for more than 298,000 mortgages. The £6.5bn figure is similar to the amount lent by the country’s ninth-biggest mortgage lender, Yorkshire Building Society, according to L&G.
Parental assistance is expected to have risen from an average of £17,000 in 2016 to £21,600 this year. Millennials are the biggest recipients, with 79% of the funding going to people under 30.
The south-west of England and London will see the largest average parental contribution per transaction, at £30,000 and £29,400, with Wales the lowest at £12,500.
“Transaction volumes are down in the housing market, but [parental] funding is growing exponentially. This is not a good thing, nor is it sustainable or equitable for our parents [the lenders] or young people [the borrowers].
“The intergenerational inequality that creates the demand for [parental] funding continues to widen – younger people today don’t have the same opportunities that the baby boomers had, including affordable housing, defined benefit pensions and free university education.
“Parents want to help their kids get on in life, and the bank of mum and dad is a testament to their generosity.
LIVING AND WORKING LONGER
The baby boomer generation, now in their 50s to 70s, should stop thinking about putting their feet up when they retire – and maybe not retire at all for the sake of their health, according to the government’s chief medical officer.
A report on the health of the nation says that people of retirement age might do well to stay in work if they can, or else get involved in community and voluntary activities that will keep both mind and body in better condition than sitting in a fireside chair.
“People are living longer than ever and so retirement presents a real opportunity for baby boomers to be more active than ever before. For many people, it is a chance to take on new challenges, it is certainly not the start of a slower pace of life it once was,” said Davies. The health benefits of this should not be underestimated.
Some 42% of 50-64-year-olds have at least one health condition and 24% have more than one. Staying active through appropriate work – heavy physical work such as building may not be advisable – or volunteering will help. Social engagement is also very important for mental health.