Tenants lean on "Bank of Mum & Dad" to make ends meet

The cost-of-living crisis is leading to a greater dependence on the Bank of Mum & Dad, following an extended period of support given during the pandemic, according to research from Saga Equity Release.

The Bank of Mum & Dad has always played an important role in helping younger generations get on the property ladder or with other big life purchases and the research conducted suggests that the cost-of-living crisis appears to be further intensifying this support. It’s not surprising that many over-50s are now considering equity release as a way to provide additional help to their families.

In October 2020, just one in five parents said they were helping their adult children financially. Now, almost two years on, this support has intensified, with one in four saying they will be providing financial support to their adult children over the coming months, covering accommodation and other costs as required.

Some 64 per cent of parents also expect the current cost-of-living crisis to have a greater impact on their adult children’s finances than the Covid-19 pandemic. This is because of rising bills, a lack of savings and ever increasing rent.

These findings are further backed up by Compare The Market’s research, which suggests that over half of all renters do not have contents insurance. When quizzed on the reasons why, many renters cited their mistaken belief that their landlord’s home insurance policy also covered their personal possessions. Of those renters that did understand the need to have their own contents insurance, more than two-fifths said that they had sacrificed it in a bid to save money as the cost-of-living crisis is placing a substantial strain on finances.

This kind of cost-cutting could actually end up costing more, as - should the worst happen - any misplaced, stolen or damaged personal possessions would not be replaced as they were uninsured.

With more and more tenants struggling with the cost-of-living crisis, relying on the Bank of Mum & Dad and sacrificing their own contents insurance in a bid to save money, it has never been more important from a landlord's perspective to have maximum protection on your investment property.

Speak to our office today to discuss our Rent Guarantee Policy and how we can offer you that peace of mind in these difficult times. Call us on 0161 511 5339 or complete our contact form.