Thousands of adult children are expected to receive Christmas presents, as nearly two-thirds of parents have already helped them buy a home by spending an average of £ 32,440 for deposits, according to Zoopla.
The real estate website said 64% of parents helped their kids buy their first home, with 24% of parents saying their kids could never have afforded to buy a property on their own.
His survey shows some parents have gone even further with deposits, with 14% giving their children more than £ 50,000. And an additional 10% of parents said that while they did not contribute their children’s home security deposit themselves, other family members did.
He adds that 3% of parents of adult children plan to give them money this Christmas to help them access homeownership.
In total, about three-quarters of all buyers turned to family financial support.
UK average house prices hit a new record high of £ 272,992 in November, according to the latest Halifax index.
This represents a monthly change of 1% – the fifth consecutive month of house price increases – and an annual growth rate of 8.2%.
Halifax points out that for first-time buyers, home prices rose 9.1% over the year compared to 8.8% for movers.
The Zoopla report adds that mom and dad’s banking doesn’t stop with deposits, with 36% of parents also helping pay the rent or mortgage at some point.
The survey indicates that 15% of parents provided money to pay bills, 13% for repairs and 12% for decoration.
Daniel Copley, Zoopla consumer expert, said: “It is very clear that average house prices in the UK have been rising at a faster rate than wages over the past decades, reinforcing the idea that it It is more difficult for young adults to access the property ladder today than that. was for previous generations.
“Despite the financial hurdle that a first-time home purchase can present, our data shows that FTBs are prolific in the market and have been for some time.
“Putting more money towards the purchase of a home can help lower mortgage payments and in turn can unlock lower interest rates, so it’s clear that when it comes to property, mom’s bank and daddy will be in business for a long time to come. “
Ian Biggs, Head of Product Performance, Coventry Building Society, adds: “Affordability is the number one issue facing the next generation of first-time buyers.
“Zoopla research reveals that almost two-thirds of parents report contributing to their adult children’s home deposit, but not all new home buyers will receive financial support from their parents.
“It is encouraging that this year has seen an increase in mortgages for first-time buyers. The increased availability and competitive rates of higher loan-to-value products have been essential in helping people with small deposits take their first step on the real estate ladder.
However, as house prices rise, the savings of aspiring first-time buyers erode. Brokers play an important role in helping those looking to buy start – and keep – saving for their first deposit. , as well as helping them find the mortgage deal that’s right for them.
“It is essential that brokers stay on top of the savings options available to first-time buyers to help them take advantage of these products and begin the process of buying a home with as large a deposit as possible – that whether with or without the financial assistance of their parents. “
Zoopla says its survey was conducted among its users, nearly 1,100 of whom are parents of adult children.