UK home buyers are always faced with challenges as they navigate through the process of purchasing property. Sometimes challenges are easy to overcome, but typically they involve raising large sums of money and working through a disappointing credit rating. When it is over however, the buyer is usually left with a significant amount of personal satisfaction and their own property. First time buyers currently face struggles not seen in years, and house price growth has a lot to do with it.

First time buyers exhaust many avenues on their way to purchasing their first home. Saving money is usually the first step, whilst persevering through several years of doing so is a big part of it. Next, first timers have to accrue a credit score worthy of purchasing a home. This is not a simple task and is usually challenged by their first loan officer. Lastly, first time buyers must select a house which is affordable before and after the sale. Many first timers do not consider the costs of ownership after they sign on the dotted line.

The bank of mum and dad is becoming more and more popular as a stop on the way to home ownership. This year it is expected parents will provide £6.5bn in lending for their children as a way for them to acquire a step on the property ladder. This is 30% higher than last year, an increase of £1.5bn, according to data from Legal & General and CEBR.

Nigel Wilson, the chief executive of L&G commented on the data, saying: “This is the second year of our bank of mum and dad research programme and the statistics show the problem is getting worse, not better.

“Transaction volumes are down in the housing market, but [parental] funding is growing exponentially. This is not a good thing, nor is it sustainable or equitable for our parents [the lenders] or young people [the borrowers].”

Wilson added: “The intergenerational inequality that creates the demand for [parental] funding continues to widen – younger people today don’t have the same opportunities that the baby boomers had, including affordable housing, defined benefit pensions and free university education.

“Parents want to help their kids get on in life, and the bank of mum and dad is a testament to their generosity, but it is also a symptom of our broken housing market.

“The UK is experiencing a supply-side crisis in housing – we are simply not building enough houses. We need to build more homes for the young, old and families alike, more quickly and cost effectively.”