Bank of mum and dad paying half of kids' deposits

Published by Rob Goodman on 25 June 2014.
Last updated on 25 June 2014

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.

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