Recent research commissioned by Legal & General has found that 56% of first-time buyers under the age of 35 had help from their parents to get onto the property ladder.
71% of homeowners would have had to delay plans by an average of 4 years if it was not for the financial support from their family.
This year, under 35 years olds are expected to receive £1.36 billion from parents to help them onto the property ladder and a third of those will have to pay at least some of it back. This makes the Bank of Mum and Dad (BoMaD) one of the top 6 lenders in the UK.
On average, the BoMaD is lending £19,000 to those aged under 35 with 21% receiving more than £30,000.
The BoMaD are expected to also support 61% of over 35’s amounting to 101,800 transactions which are likely to help children purchase a more expensive, larger property.
Suprisingly, 9% of over 55s also seek parental help to purchase a property as without parental help they would not be able to purchase at all.
It is a natural flow of wealth between generations and perhaps makes inheritance planning sense.