How much will you be giving your DC for a house deposit?

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Mine are only little, buy we live in the south east and this is worrying me already. I'll never be able to give my kids the kind of money my parents did to help me on the ladder.

What a spectacularly tone deaf, oblivious of privilege thread.

We have just one child. We gave her £50k about seven years ago as a deposit for a house, and have just given her another £50k towards their next house as they've nearly outgrown their original house as they've had their children. It gives me great pleasure to do so. We moved to a cheaper (but very lovely) area just before lockdown so were able to have surplus funds from our house sale, hence the latest gift. We love seeing them benefit now, rather than them having to wait until after we're dead!

I just feel like a terrible parent when I read threads like this.

Why? People are allowed to discuss money even if others are bitter about it

We have a decent amount in investments which we plan to pass on to our dc throughout their lives. No specific figure for a house deposit yet, it depends on how much the investments are by then and what house prices are like at that time. It will probably need to be quite a lot as we live in London - the dc could choose to live elsewhere but I'd be happier if they live close enough to visit.

Neither DH nor I had any family help or inheritance to help with buying a property - but we have been fortunate financially and it makes sense to pass on money to the dc when they are younger rather than getting hit by inheritance tax.

I see. Then the parents need to explain what is an investment. They can still buy the 200k flat and make some money on them as they become more popular. In the meantime rent it out to cover the interest service.

I disagree, you can’t just assume the 200k flat in a dodgy part of London is an investment. Things have changed a lot.

Two professionals who live on the north maybe?
Why can't you imagine a different experience to yours?

DH and I haven’t been gifted anything, but we were lent the money for a deposit on a shared ownership property by in laws, it was about 7k. We live on the south coast.

I don’t know why this is a huge shock to people some of these kids are getting these sort of money. It’s called the great wealth transfer. Please read about it.

I genuinely don't know a single person whose parents gave them money to buy a house. I don't know what kind of existence these people have who can afford to gift money to their children, but frankly we just about manage to pay the bills and eat every month.

Much of it comes from property, anyone who bought pre crash will have seen huge gains & yrs of low interest rates plus gps properties etc.

I don’t know why this is a huge shock to people some of these kids are getting these sort of money. It’s called the great wealth transfer. Please read about it.

It’s not equal though, some will inherit nothing because there wasn’t anything or care will eat it up. I know some people who inherited 7 figs. I do think future governments are going to come after some of this wealth though.

I am not going to explain what gentrification is to you. These ‘dodgy’ part of London like Peckham, Brixton, New Cross gate is booming in prices. They were ‘dodgy’ years ago and now trendy. If they look at the expansion of this map you tell me what’s happening.

I'm not expecting much change out of £80k to get three kids through uni. And after that we can think about deposits.

It depends how much the area gentrifies. It might not increase in value and frankly it probably shouldn’t, because then what’ll be left for future FTBs? Renting/house sharing in central London is better in your 20s anyway, in my opinion. Buy the cheap flat in your 30s if you want to stay in London but with more security. That’s what I did, because remaining in London was my top priority. If it wasn’t I’d have moved to a much cheaper part of the country. I wouldn’t have wanted to own property in my 20s, I liked the freedom to move around and the lively house share party days.

Nothing.

Both my children got money towards costs at uni when needed, handouts when they travelled and always know they can reach out to me or their dad if they need subs (often!). Neither me or their dad own our own properties, neither of us have inherited any money or property so we have nothing to pass on.

My children have all the love, time and support in the world that I can give them, they seem very happy and fulfilled with that.

The thing is, it's not about privilege. It's about small decisions along the way of your working life - some work out, some don't. For example I worked two jobs to save for my deposit for my house and never had any money left at the end of the month after I moved in for quite a few years. No help from my parents and I didn't expect any. But I know it's not like that for my daughter's generation, and therefore why wouldn't we help her now we're much older and are in a position to do so? There are many people far wealthier than us and obviously some are not - that's just a fact. We all have choices how we live our lives and arrange our finances.

@MissLucyLiu as someone who grew up in Brixton with parents who have a house now well over a million and in-laws with similar in Hackney I have heard of gentrification once or twice 😆😆.

However look up London house price growth in the last decade vs other areas, look at London flat prices since Brexit, look at London demographics with falling school rolls and then look at the country’s economic and shifting demographics.

If was assuming that the kids would just have to stay at home until their mid twenties and save up themselves.

I grew up in Dulwich and it’s all kinda nuts. You just gotta find the next trendy place. For example if Walthamstow is flying in prices where those ppl who cannot afford that now go next ?

And I don’t think you could buy a 1 bed flat in Brixton for 200k now unless auction or shared ownership because you know gentrification.

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We’d like to enjoy retirement rather than dropping dead a couple of years after finishing work.

I grew up in Dulwich and it’s all kinda nuts. You just gotta find the next trendy place. For example if Walthamstow is flying in prices where those ppl who cannot afford that now go next ?

Dulwich has always been posh. They go to other cities eg Manchester which has seen huge growth.

After graduating we said we'd give DD £5k towards either a car for work if she needed one, a Masters Decree (which she is still half interested in despite working), marriage or towards her first home whichever came first. We've supported her through four years or uni in an expensive area and DH has retired early for his own wellbeing, so we no longer have chance to save.

We got £150k from in laws at the start of the year. No kids yet but hoping for £50k at least for each of them

With the very important caveat that assets belonging to dgps are theirs and should be used for a comfortable retirement and any care needs. If there was an inheritance at any stage we would want to send it down a generation