Half of first-time buyer home purchases are being financed by the so-called ‘bank of mum and dad’, according to research carried out by property group Savills.
Savills’ research found that contributions towards buying a first home by parents’ are likely to top £9.8 billion this year. It said that rising house prices have only put pressure on first-time homebuyers.
Over the past ten years the bank of mum and dad has provided first-time buyers with £53.9 billion, the research showed.
Commenting on the research, Residential Research Analyst at Savills, Frances Clacy, said: ‘Despite strong levels of activity and price growth across the housing markets, lenders have tended to favour less risky, lower loan to value lending, making it harder for new buyers to access the market for the first time without assistance.
‘While we expect lending at a higher loan-to-value ratio to continue to be available, slowly rising interest rates will act as a brake on affordability.’