Support from the ‘Bank of Family’ to help pay for 318,000 homes
Support: The average amount given by relatives is expected to hit £25,600 this year
Financial support from family members is expected to help pay for 318,400 homes this year, figures have revealed.
This will be the highest number of properties bought with money from the ‘Bank of Family’ since 2016, according to research from financial services group Legal & General.
The average amount given by relatives is expected to hit £25,600 this year, with the total value of homes bought with the help of Mum and Dad, as well as other loved ones, predicted to reach £124.6billion this year.
As first-time buyers struggle to get on the ladder, around 318,400 properties will be bought through 2023 with this family support. This is a staggering 14,100 more than in 2016, when Legal & General started tracking the data.
But it’s not just cash that families are forking out. Many are also providing indirect financial support to help loved ones boost their savings pot.
Almost a third of parents and grandparents have welcomed adult family members to live with them to make it easier to save for a deposit. Nearly half of homes bought this year by under-55s will be bought with contributions from their relatives, according to the research.
Bernie Hickman, head of Legal & General Retail, said: ‘Family wealth is increasingly becoming a prerequisite for homeownership, effectively locking some groups out of the housing market for years while they save for deposits, or even altogether.’