First-time buyers will borrow a record £10 billion from the Bank of Mum and Dad this year to get on the property ladder.
The new high illustrates how difficult it is to raise a deposit for young adults despite rising house prices.
And now on average, parents will give their children £58,000 towards their house deposit, according to the Times.
It is expected that 169,000 first-time buyers will resort to the Bank of Mum and Dad this year to boost their deposits.
According to Savills, half of all first-time buyers are in this category.
First-time buyers will borrow a record £10 billion from the Bank of Mum and Dad this year to get on the property ladder (stock image)
Prices are now 13 per cent higher than before the pandemic and in August, the average house price went up by almost £5,000.
Despite the end of the stamp duty holiday, the average house price in the UK was £248,857 in August- 11 per cent higher than August 2020.
Last year’s property ladder lending record from parents was £6.1 billion but a new high will be reached as children are expected to get a total of £9.8 billion this year.
The number of parents lending money is greater than that of many high-street lenders.
The graph shows the dramatic percentage change of house prices between March 2020 and August 2021.
Savills predicts that 12.5 percent of the money loaned to first-time buyers by 2021 will come from parents.
However, parents will continue to provide assistance in 2022 due to a slower pace of house-buying and banks lending at higher interest rates.
Frances Clacy is a residential analyst at Savills and predicts that parents can be relied upon for financial support for many years.
Ms Clacy said: “Slowly rising interest rates will act as a brake on affordability, while rising costs of living, increased national insurance and the prospect of a lower threshold for student loan repayments will make saving for a deposit all the more challenging.’
Savills predicts 12.5 percent of money lent to first-time purchasers in 2021 will come directly from parents (stock illustration)
She also stated that family support will continue to be an important source of funding for children who want to move up the property ladder, especially in an environment after Help to Buy.
Savills has crunched the data from the last ten years and estimated that parents have handed out £53.9 billion to help their children get on the property ladder.
While the amount has steadily risen over the years, it was still quite high in 2006.
Records from that year show that there were still a third of first-time buyers supported with their house deposit by their parents and they were given close to £3 billion by them in total.