Grandparents concerned about property prices
Published On 9 September 2007
Many of the nation's grandparents are putting money to one side in order to help their grandchildren afford a mortgage and property.Research carried out by CreditExpert found that around 4.5 million older people are saving for their grandkids as they are worried about rising house prices.
One in nine say they are doing so as they lack confidence in the child's parents to provide a step onto the property ladder and one in eight are concerned their grandchildren will not enjoy the same quality of life as they did.
"It seems many grandparents are stepping up to fill the financial void of the 'credit generation' whose money is increasingly tied up in mortgages, loans and credit agreements," said Jim Hodgkins from CreditExpert.
"A decade ago many would have just given their grandchildren birthday money or to set up a building society account. Nowadays, it's more likely to help the child onto the property ladder, one of the defining struggles young people face in today's society."
A recent report from the Royal Institution of Chartered Surveyors suggested that affordability was at a 17-year low for first-time buyers, as a couple in the lowest income bracket would need to save 96 per cent of their annual earnings to cover stamp duty and deposit on a first property.
