Bank of Mum and Dad would almost double deposit funds if repayment was guaranteed

When asked how much they would be willing to gift, only one in ten (10%) said £10,000 to £50,000, but this doubles to one in five (19%) if they knew the loan was going to be repaid.

While parents will happily part with an average of £13,088 to help support their children’s future savings goals – this amount increases to £22,093 if the money was guaranteed to be treated as a loan.

In today’s property market, the average UK house price now costs approximately £277,000 and full-time workers can expect to spend at least 9.1 times their annual earnings to be able to afford a home.

Parents say their savings are also under pressure from everyday bills and the cost-of-living crisis, with two fifths (37%) open to the idea of gifting financial support but simply unable to do so.

However, the mortgage lender's research found just under half the parents surveyed would prioritise helping with the deposit for their child's first home (46%), compared to 10% for higher education, a wedding, or a car (7%). Overall, two thirds of parents (67%) said they would help financially with 26% happy to gift money without any agreement on how it would be spent.

Sophia Guy-White, co-founder of Generation Home, commented: “With so many factors stacked against first-time buyers amid the backdrop of this year’s even tougher financial climate, it’s easy to think the doors of the property market are completely slammed shut.

"Generation Home are committed to helping parents who want to provide financial support but fear the uncertainty of gifting substantial sums of money as a deposit. Our Generation Home Agreement turns 'deposit gifters' into 'deposit boosters' via an interest free loan; removing those awkward conversations about financial agreements and getting more young people on the ladder that much faster – with everyone secure in the knowledge they are protected.”