First-timers rely on 'bank of mum and dad'

Parents are the new bank with many hard-up first-time buyers relying on their mums and dads for hand-outs to get onto the property ladder, according to experts.

Paul Holmes, the chief executive officer of Firstrung, which specifically helps first-time buyers, says that some parents are acting as a bank when it comes to assisting their offspring.

Parents are prepared to lend but they want their money back in the long run because they need to protect their savings.

This is further exacerbated in London where first-time buyers need on average ten times their salary to afford an average priced property.

"Recent research from the Council of Mortgage Lenders suggested first-time buyers now need to save the equivalent of 75 per cent of a year's annual salary to assist with a deposit - this is taking up to five years," said Mr Holmes.

"Naturally it's a UK wide problem, in relative terms it's just as unaffordable in Chiswick, London or Childwall, Liverpool," he added.


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