However, one in four (23%) parents with children aged under 10 years think that should house prices continue to rise, their children will be in their mid thirties before they can afford to move out and buy their own property.
One in seven (15%) parents are so concerned by this they have even started a home fund to help their new born children take their first steps onto the property ladder in later life.
Gary Lumby, Yorkshire Bank’s head of retail, said: “With the current pensions crisis, climbing down the property ladder could provide one solution to parents who have little savings but are looking to retire and improve their lifestyle.
“It’s also encouraging to see so many parents are looking ahead, seeing how the property market is going and taking actions to prevent their children having to live at home longer than expected. Some may even be downsizing to free up funds to help their children on to the property ladder.”
Inheritance tax
Yorkshire Bank research has found even when children do move out, downsizing may not be an option. One in ten between 34 and 44 years old (9%) are considering ways to minimise paying inheritance tax in their later years by moving parents or grandparents into their home. This will enable them to sell their property and combine their assets at the same time.
