As well as using their cash savings Castle Trust’s research also found that a third (32%) of the parents who have or plan to contribute to their children’s first home intend to raid their stock market-related investments, a quarter (26%) will use JISAs and Child Trust Funds, and one in five (19%) intend to cut back on certain aspects of their lifestyles in order to help their children on to the property ladder.
Sean Oldfield, chief executive officer of Castle Trust, said: “Relying on savings accounts to help children build up their first deposit may be an uphill struggle with rates at an all-time low and unlikely to rise in the near future.”
Castle Trust’s research found that the average contribution is likely to be £16,300 and that three out of four (73%) don’t expect to get their money back.
