It means that the so called Bank of Mum and Dad is continuing to play an important role in the property market with the average amount needed amounting to £17,900.
The study from Santander Mortgages also reveals that 68% of parents who provided money to help their children get on the property ladder will get nothing back in return as it was intended as a gift.
Almost three quarters, 72%, of females were gifted the monies by their parents, in comparison to only 62% of men. Some 29% received the money as the equivalent of an interest free loan while only 3% of parents contributed towards their children’s deposit as an investment.
For those that are yet to buy their first home, the average amount they look to receive from parents is £17,900. With the average first time buyer deposit being just under £25,000 this represents a 71.6% subsidy.
Some 22% estimate that their parents will contribute £20,000 or more while 34% of those who have children yet to buy a home say they will contribute money towards a deposit in order to help them on to the property ladder.
‘Raising a deposit can be a huge challenge and our research shows that many rely on financial help from their parents in order to get a foot onto the property ladder. Buying your first home can be a daunting but there are ways to make it easier and support is available to help first time buyers with upfront costs,’ said Miguel Sard, head of Santander Mortgages.
