The so-called bank of mum and dad will finance a huge 25% of all mortgage deposits in the UK this year, which means in theory it makes this method as effective as some of the UK’s biggest lenders.
Parents will lend over £5billion in 2016, which equates to deposits for over 300,000 mortgages and purchasing homes worth £77 billion, new research suggests.
Financial lending and gifts from parents are coming to an average of £17,500 or 7% of the average price of a home.
However, reliance on this method risks increasing trends of inequity since many young people are unable to afford a property much less have parental support to fall back on when attempting to get on the property ladder.
Recent findings has suggested that we have a housing crisis in the UK, we’re not building enough homes.
This same research shows that three-quarters of homes funded by families are done by parents, with grandparents and other family members making up the rest.