Increase in parents becoming landlords to help children

By Lauren Burns

New research suggests that 730,000 landlords in Northern Ireland and the rest of the UK are parents renting a property out to their children as a means of financial assistance.

The research by Post Office Mortgages suggests that double that number would be prepared to purchase a buy-to-let property with the specific goal of helping out children who were struggling to get on the property ladder. Only 5 per cent of existing parent landlords are thought to be charging the market rental rate, and 12 per cent are even paying their children’s utility bills.

There are said to be mixed motives for parent landlords, with 50 per cent taking to the buy-to-let market to help children who are unable to buy, or are saving in order to buy. However other motives are said to include wanting to keep children close by, buying a rental property as a genuine investment which they intend to sell at a later date, or being keen to get their adult children out of the house.

If you are purchasing a property in Northern Ireland, or selling or remortgaging your existing home, contact one of the property conveyancing solicitors at Wilson Nesbitt in Belfast or Bangor for advice and information by clicking here.