64% of parents whose adult children own a home ‘contributed towards deposit’

Nearly two-thirds (64%) of parents whose adult children own a home contributed towards a deposit, a survey has found.

On average, parents contributed £32,440, with many saying their children would not have been able to get on the property ladder without their support, according to Zoopla.

An additional 10% of parents said that, while they did not contribute, other family members did.

One in seven (14%) parents said they gave their adult children more than £50,000 towards their home.

Just over one in 10 (11%) paid the entire deposit.

And 3% of parents with children over the age of 18 plan to give their children money towards a deposit for a home for Christmas this year, the survey of more than 1,000 parents with adult children found.

House prices have surged to record highs during 2021, with UK housing market activity likely to be at its busiest this year since at least 2007, according to industry experts.

Low mortgage rates have helped to keep monthly repayments relatively affordable for home buyers.

Daniel Copley, a consumer expert at Zoopla, said: “Those who managed to ‘go it alone’ and purchase a home without parental support are very much in the minority and the transfer of intergenerational housing wealth is key.

“When looking at the data, it is very clear that average house prices in the UK have increased at a greater rate than salaries over recent decades, reinforcing the notion that it is harder for young adults to get on the property ladder today than it was for previous generations.”