From Moneywise:
A survey carried out by insurer Legal & General and the Centre for Economics and Business Research (CEBR) has found that 17% of so-called ‘Bank of Mum and Dad’ lenders are already worse off, or would be, after providing financial help to the younger generations.
One in 10 (10%) said they felt less financially secure, while 4% postponed retirement after supporting their family to get onto the housing ladder. The research showed that more than a quarter (26%) of women felt they had sacrificed their living standards versus 13% of men.
More than a quarter of homes bought in 2018 backed by the 'Bank of Mum and Dad'
Funding public services out of a 'service charge' on land values (aka Land Value Tax) instead of imposing taxes on output and employment might well reduce selling prices, but every £1 paper loss incurred by Mum and Dad saves each child £2 in future mortgage repayments.
Even if selling prices didn't change much (as is quite possible), every £1 paid in LVT will save the next generation £1 in mortgage payments, as well as saving Mum, Dad and every child about £1.50 each in other taxes.
That's what I call "helping your loved ones get on the housing ladder"!
Quick update
6 hours ago
3 comments:
Yes but Mark, I’ve had to tell you this before - you’re meant to list the current valuations of each of those properties in question before any article on them.
JH, ok.
"Mark Wadsworth said from his 4-bed detached home in an area where the average house price is £800,000, this is great if I want to down size, but if I do, I'll have to hand half my unearned gains to my kids to help them onto the ladder."
That’s better.
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