Landlords are increasingly letting second properties to their children, according to a new study.
Post Office Money calculates that around a quarter of a million parents are already letting properties to their offspring, and that a further 1.4 million would be willing to take on their children as tenants.
A quarter of parent landlords said they let to their children because they are currently unable to take their first steps on the housing ladder.
A further quarter said they do so in order to save themselves money.
The remaining landlords either want to provide their children with a safe property or are struggling to let their children ‘fly the nest’ so want to keep them nearby.
According to the research, parent landlords are a generous bunch with just 5% charging the going rental market rate to their related renters.
The most common payment arrangement is allowing their children to pay what they can afford, cited by 30% of those surveyed, while 12% said they even pay the bills for the property.
Parent landlords’ biggest concerns are clashing about rent and worrying about the condition of the property and their children hosting parties.
“An increasing number of parents are considering buy-to-let both as a means of helping their children, and of securing their own financial future,” says John Willcock, spokesperson for Post Office Money.
“By becoming a ‘parent landlord’ they are able to provide this support – without necessarily having to compromise on their own space at home.”