The number of so-called ‘parent landlords’ is set to rise as increasing numbers of baby boomers use buy to let as a way to provide low-cost accommodation when their children grow up.
Research by Post Office Money shows that some 730,000 parents are already letting properties to their children, with an estimated 10 per cent not charging any rent and the vast majority charging below market rent levels. The majority of the parents feel letting at sub-market rates will allow their children to save for deposits for their own homes.
Around a quarter of the parent landlords want to sell the property in future to fund their own later lives.
However, being a ‘parent landlord’ doesn’t come without its drawbacks. Some 30 per cent of parents questioned worry about clashes regarding rent, while a quarter question how well their child will take care of the property – and 19 per cent worry about the home being used to host parties with friends.