Generous parents contributing £27 bn to first homes

The average parent is contributing £5,784 to their children’s first house deposit, research has shown.

According to Abbey Mortgages, one in seven first-time buyers are benefiting from the generosity of their parents, adding up to a total of £27 billion worth of helpful housing deposits.

Parents are not only helping their offspring financially, it was revealed, as the average mother or father spends around 17.8 hours in assisting with the choice of first home and 22.5 hours with moving in.

Following reports last week that the last few 125 per cent mortgage deals have disappeared from the market and that the remaining 100 per cent loan-value products are becoming increasingly difficult to obtain, parental help could prove more crucial than ever.

Nici Audhlam-Gardiner, head of the firm, commented: “Because house prices have increased so much over the past few years, buying that first home is also a bigger and more daunting investment than it was for the previous generation so guidance is undoubtedly needed.”

© Adfero Ltd

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