Bank of mum and dad paying half of kids' deposits

Bank of mum and dad paying half of kids' deposits

Homeowners receive half (49%) of their deposit for their first property from their parents, new research has found.

The average contribution first timers receive from mum and dad is a hefty £17,900.

For those buying their first home property and needing the average deposit across England and Wales of £25,000, the £17,900 parental injection is represents a contribution of 71.6%.

More than one-in-five potential buyers (22%) expect their parents to dish-out more than £20,000 to help them get their first home.

Santander found that two-thirds of parents who helped with the deposit did so as a gift and don't expect anything back in return.

Meanwhile, 29% gave the cash in the form of an interest-free loan, while 3% contributed as a way to invest in the property.

Miguel Sard, head of Santander Mortgages, said: "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 daunting but there are ways to make it easier and support is available to help first-time buyers with upfront costs."

Earlier this month, Nationwide revealed UK house prices rose by 11.1% in the past year, the fastest increase in seven years. The average house price now stands at £186,512 - higher than the previous peak of October 2007.