Support from the ‘Banco de la Familia’ to help pay for 318,000 homes
Support: The average amount donated by family members is expected to reach £25,600 this year
Financial support from relatives is expected to help pay for 318,400 homes this year, figures reveal.
This will be the largest number of properties bought with money from the ‘Banco de la Familia’ since 2016, according to research by financial services group Legal & General.
The average amount contributed by relatives is expected to reach £25,600 this year, with the total value of homes bought with the help of mum and dad, as well as other loved ones, expected to reach £124.6bn sterling this year.
As first-time buyers struggle to move up the ladder, around 318,400 properties will be purchased through 2023 with this family support. This is a staggering 14,100 more than in 2016, when Legal & General began tracking the data.
But it’s not just cash that families are shelling out. Many also provide indirect financial support to help loved ones increase their savings.
Nearly a third of parents and grandparents have welcomed adult family members to live with them to make it easier for them to save for a deposit. According to the investigation, almost half of the houses bought this year by people under 55 years of age will be bought with contributions from their relatives.
Bernie Hickman, head of Legal & General Retail, said: “Family wealth is increasingly becoming a prerequisite for homeownership, putting some groups out of the property market for years while they save for deposits, or even forever”.