Parents pay for children to fly the nest at Loxley Court

As many first-time buyers find it increasingly difficult to get a foot on the property ladder, Barratt West Midlands has seen a rise in the number of children looking to their parents for financial help when buying a property at its Loxley Court development on Birmingham Road in Stratford upon Avon.

According to the Alliance and Leicester* parents are paying on average £21,314 to help their children get onto the property ladder and more than one in three (34%) say they would feel guilty if they were unable to put money towards their child's first home.

David Child, Sales Director for Barratt explained, "With the cost of living at an all time high and the rising level of student debt, it is no surprise that parent's have to help their offspring to get onto the property ladder and move out of the family home.

"By helping out financially, parents can not only help to ease the pressure of monthly mortgage repayments, but they can also find that they have a sound investment for the future. One of the easiest ways to help out offspring is by providing some or all of the deposit, which will not only reduce the size of the overall mortgage, but will also help to secure the best mortgage rates on the market.

"With this trend on the rise, we have a range of moving solutions which have been designed to help people buy their first home with the help of a parent. We are currently offering our ‘Parent Power' scheme on selected plots at Loxley Court which means that if a parent contributes £7,950 towards the deposit, we will also put in an additional £7,950, making the prospect of home ownership even more affordable.

"Homebuyers will also be able to use one of our recommended solicitors and independent Financial Advisors, ensuring that they are able to make the right financial decisions for them."

Two such buyers who have been able to get a foot onto the property ladder with the help of their parents are friends Gemma Nash and Shiv Chotai. Both students at Coventry University they found that they were spending a small fortune on rent during their first year studies. After thoroughly investigating the market the girls and their parents decided to become landlords for the very first time at Barratt's CV One development in Coventry.

Loxley Court is situated within walking distance of Stratford town centre, and with a range of one- and two-bedroom apartments currently available, is ideal for first-time buyers and young professionals. Prices start from £159,000. For more information log on to Barratthomes.co.uk/loxleycourt.

* Statistics taken from Alliance and Leicester press release ‘Parents fork out more thank £21K for children to fly the nest' 25th August 2007.