One in four buyers turn to bank of mum and dad

Analysis by Legal & General and economics consultancy CEBR shows that 23% of home purchases this year will be backed by the bank of mum and dad - up from 19% in 2019. It is predicted that family and friends will lend about £3.5bn to loved ones this year - down substantially from the £6.3bn they lent in 2019. Those able to assist will lend an average of £20,000 towards a deposit on a home, said researchers. According to the study, 19% of all home purchases in 2019 were funded partly or wholly by friends and family. In 2020 that figure will rise to 23%, it said. The data also showed that 24% of homebuyers said they were now more reliant on financial support from the bank of mum and dad following the pandemic.

The Guardian (31/08/2020)   Daily Mail (31/08/2020)   The Independent (31/08/2020)