One in six (17 per cent) of UK parents want to buy a property for their children when they go to university, new research shows.
Apart from wanting their children to be safe and secure during their studies, parents are also keen on driving costs down and getting a return on the property investment, small business insurer Direct Line for Business found in a new study.
It is only natural for parents to look for ways to cut back on university expenses given the high tuition fees and the ever growing cost of living.
The research shows that 17 per cent of parents see property as a way to lower costs and another 17 per cent are expecting returns on their investment. A quarter of the parents hope they would get regular income from the property.
Still, the biggest reason to purchase a home, with 40 per cent of parents naming it, is to provide a safe environment for their children to live in.
Jazz Gakhal, director of Direct Line for Business comments:
“It’s great to see that parents are seeing opportunities to help their children get a first step on to the property ladder and create additional income through buying a property for their university bound children.
“However the ownership arrangement of the property needs to be made clear from the outset. Parents should remember that if their child is letting out rooms to friends, it is the parent that will become the landlord. Parents who believe they may be in this situation should first check with their mortgage provider to see if this is allowed. They should then educate themselves on the regulations and liabilities surrounding student lettings.
“Parents should also consider landlord insurance, particularly because they will have a duty of care not only to their child but also to their child’s friends. Home insurance is not tailored to your needs in the same way as landlord insurance when renting out a property. Home insurance therefore may not provide you with the appropriate cover for injury to tenants, damage to other properties or cover for loss of rent resulting from fires, storms and floods.”
