UK parents are going to be playing the role of banking lender for a large number of first time home buyers. Without their support those hoping to climb onto the property ladder would be shut out completely. According to research conducted by Legal & General and economics consultancy Cebr, parents are expected to lend more than £6.5 billion to their children to aid them in becoming homeowners.

The amount of parental lending forecasted is an increase of 30% over last year’s amount of £5 billion thought to be loaned to first time buyers. The level of lending amounts to more than 25% of all UK property purchases in a valued amount of close to £75 billion and a volume of more than 298,000 mortgages.

The average amount parents are expected to lend their children for a property purchase is £21,600. The millennial demographic is the top group borrowing from their mums and dads with 79% of the parental funding going to those under the age of 30.

First time buyers are reaching a point in which they are feeling pressure to buy, likely more so than in years past. The pressure of Brexit and the global economy is making the future forecast of interest rates less predictable. With a possibility of missing out on low interest rates, first buyer schemes, and more competitive seller prices than in months past, first time buyers are looking more seriously at reaching their homeownership goals.

Strategy to get onto the property ladder and then work toward a good credit history to seek a low interest fixed rate remortgage is also a goal. The first step is to get a mortgage and parents in the UK are helping with that.