It’s not news that parents will often provide financial support to their children when they buy a home. Yet while they are set to support even more house purchases this year – 316,600, a rise of 6% on last year - recent research has shown that they aren’t able to lend so much.

The research, by Legal & General, revealed that the ‘Bank of Mum and Dad’ could contribute 17% less this year compared to 2017, which implies that their finances are feeling the squeeze. In fact, the amount due to be lent in 2018 is £18,000, compared to £21,600 last year.

Chief Executive of Legal & General, Nigel Wilson, said:

"The volume of transactions depending on Bank of Mum and Dad funding keeps on growing, even as parents find it harder to provide as much money for the deposit.

"This is not a positive trend - nor is it sustainable or fair for our parents and young people to remain so co-dependent when it comes to housing purchases.

"We need to take action to fix the housing market and open up affordability for all."

Indeed, it seems that with 27% of buyers still receiving financial support from friends or family when buying property, many still can’t buy a home without parental help, putting pressure on parents to budget for this.  This trend looks set to continue and is likely to affect many of our clients with families.

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