Homeowners who used bank of mum and dad ‘pressured to live close’

YOUNG homeowners are finding that the “bank of mum and dad" comes with strings attached, with some people whose parents gave them financial help to get on the property ladder saying they felt obliged to live nearby.

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More than six in 10 (62%) homeowners aged under 35 felt pressure to stay geographically close to their parents because of the help they received, a survey for Compare the Market found.

And two-thirds (67%) said they feel less able to push back against their parents in disagreements.

More than a fifth (22%) said their parents visit them more often as a direct result of the financial help they gave them, while a smaller proportion (17%) said their parents had a say in which home they chose and continued to have an influence on significant home improvements.

The survey also highlighted the impact on parents of giving financial help, with three-quarters (75%) of homeowners saying they worry about how it could affect their parents’ retirement security.

Some had received as much as £50,000 to £60,000 from parents, while some had used their parents as guarantors, with parental help also being used to help fund deposits, legal fees, building work and furniture.