06 Jun 2018
The Bank of Mum and Dad remains a major force in the UK housing market.
It is expected to provide nearly £6billion of lending this year,
according to financial services group Legal & General.
Twenty-seven per cent of buyers will receive help from friends and family - up from 25% in 2017.
This year the Bank of Mum and Dad will help 316,600 loved ones buy a home, compared to 298,300 last year.
The value of these property purchases in 2018 is forecast to be £81.7billion.
However, Legal & General reports that friends and family are providing smaller sums - the average UK handout will decline to £18,000 this year from £21,600 last year.
The typical contribution in Scotland will be £10,800, as against £15,500 previously.
Total lending by the Bank of Mum and Dad is predicted to fall to £5.7billion in 2018 from £6.5billion in 2017. But this latest figure is still well ahead of the £5billion recorded in 2016.
It is no surprise that friends and family have to dig deepest to help in London - typically coming up with £30,600 this year, compared to £29,400 in 2017.
More buyers in the capital (41%) receive Bank of Mum and Dad aid than in any other area of the country.
The UK figures also show under-35s are most likely to receive assistance, with nearly three in five receiving money from friends and family to buy a property. This drops to just 8% for over-55s.
But significant numbers of homeowners aged between 45 and 55 are now relying on the Bank of Mum and Dad - with one in five receiving help.
Nigel Wilson, group chief executive at Legal & General, said: “The Bank of Mum and Dad remains a prime mover in the UK housing market, and will lend the best part of £6billion to buyers this year.
“The volume of transactions depending on this funding keeps on growing, even as parents find it harder to provide as much money for the deposit.
"Bank of Mum and Dad funding is a vital plank in the housing market, but this year the supply of funds is being squeezed.
"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."
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