First time buyers are essential to the housing market. There have been many programmes put into place to help first time buyers onto the property ladder such as Help to Buy, but many are still finding it hard to get into a home without the assistance of family members. In a new study commissioned by Slater and Gordon, it was revealed that the average mortgage deposit assistance from parents is £18,505.

One in seven parents takes on debt to help their children gain their own house. Because of taking on this debt many must dip into their savings, while others have had to downsize their own home, or remortgage their property for cash release. One third of the more than 500 parents polled in the survey said their financial security had been impacted by helping out their children. While many of the parents called the investment into their children’s homes a loan (16%), less than half of them expect to get their money back.

Stephen Lintott, the head of property at Slater & Gordon, said, “There are a huge number of buyers who simply can't afford to get on to the property ladder without the help of family members.

“We have found that many relatives say that their act of generosity wasn't well advised and resulted in financial hardship or anxiety.”

Nearly half of the parents in the poll felt obligated to help their children with the mortgage deposit and two-thirds felt their children could not have achieved their mortgage deposit without their assistance. Only one-fifth had sought legal advice before handing over the money to their children and only 14% had any legal documentation or contract in place to protect them.