Half of first-time buyers under 35 funded by Bank of Mum and Dad
Additionally, 71% of these new homeowners said they would not be able to purchase a home without financial support from their family and instead would have had to delay plans by four years on average.
The Bank of Mum and Dad (BoMaD) is lending on average £19,000 to those under the age of 35, with 21% receiving more than £30,000.
In total, the under 35s are expected to receive £1.36bn from their parents to get onto the property ladder this year.
However, not all are receiving the money as a gift as a third will have to pay at least some of it back.
Overall, BoMaD lending will support 73,160 property purchases among those aged under 35, down 8% on the 79,631 transactions funded by parents last year.
Parental support will continue to be an important source of money as a third of people looking to buy in the next five years will rely on help from family or friends to do so.
Help for older borrowers
Those over the age of 35 are also getting help from parents, as 61% of BoMad lending is expected to support purchases across this age group amounting to 101,800 transactions.
This is likely due to over 35s seeking larger, more expensive homes.
Even those who are aged over 55 and planning to buy are receiving parental help, as 9% said they would have to put off purchase plans without financial support.
Nigel Wilson, CEO at Legal & General, said: “The Bank of Mum and Dad’s role in Britain’s housing market is ubiquitous. Across the UK, parents, grandparents, family and friends are digging into their pockets to help young, hopeful buyers and even growing families to make their housing plans a reality.
“These generous lenders are often funding most or all of the deposit buyers need to step onto or up the ladder.
“But while the Bank of Mum and Dad is playing a clear and present role for many buyers, it remains a symptom of a broken housing market. Thousands of people simply don’t have a Bank of Mum and Dad to rely on.
“We must address the UK’s ongoing housing crisis. Only then will we be able to tackle the issue of affordability.”