This is not surprising given the fact that average household savings have not kept pace with large rises in deposit requirements, given significant house price inflation.
However, families are not just offering monetary aid, many are also providing indirect financial support to help loved ones boost their savings pot.
For example, almost a third (31 per cent) of parents and grandparents have welcomed adult family members to live with them to make it easier to save for a deposit, while a further 37 per cent would be willing to house their adult children in the future.
L&G estimates that buyers save an average of £24,900 when living with family members, which they can put towards their deposit.
However, the firm said this support is likely another key factor exacerbating the gap between those with and those without family wealth when it comes to homeownership – not only does this support rely on households being able to afford additional residents, but also having the space to adequately house them.
Meanwhile, over two-thirds (67 per cent) of all homeowners in London receive parental support to purchase their homes.
Bank of Family recipients in London received £30,200 on average to support their transaction, only beaten by those in the East of England who received an average of £32,100.
However, elsewhere aspiring buyers are less reliant on the Bank of Family.
In the East Midlands and West Midlands, people received the least on average from friends and family, at £20,000 and £19,800 in each region, respectively.
Hickman said the latest research shows just how the high cost of housing, particularly in London and other major cities, continues to shape the UK.
“There are clear differences between urban and rural areas, and the lack of affordable housing in some areas is a legacy that will impact many peoples’ lives for years to come,” he said.
“As an organisation, we’re committed to improving the UK’s housing market and making sure as many people as possible have a fair opportunity to control their own future.”
“Gifting a deposit is an incredibly kind and generous thing for those who can afford it, but it shouldn’t be a necessary part of the homebuying process.”
sonia.rach@ft.com
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