The “bank of mum and dad” will help fund one in four property purchases this year – but is starting to feel the pinch, according to new research.
Figures from Legal & General and economics consultancy Cebr suggest young homebuyers are growing increasingly reliant on their parents to help them get onto the property ladder.
Research shows 27% of buyers will receive help from friends or family in 2018, up from 25% in 2017.
Mums and dads will help 316,600 loved ones buy a home – an increase from 298,300 in 2017, according to projections.
However, while parents remain a major lender, they will be handing over less cash, the report said.
The average amount they are expected to contribute towards a property purchase is expected to decline from £21,600 in 2017 to £18,000 this year.
Total lending will dip from £6.5bn last year to £5.7bn in 2018.
Nigel Wilson, group chief executive at Legal and General, said: “The bank of mum and dad remains a prime mover in the UK housing market, and will lend the best part of £6 billion to buyers this year, with over 315,000 transactions being underpinned by parental help.
“However, it’s clear that households are feeling the pinch, as (bank of mum and dad) contributions have reduced by an average of 17% from nearly £22,000 to a still very generous £18,000.”
The research involved surveys and analysis of existing figures, including HM Revenue and Customs (HMRC) house sales reports.