UK parents are paying an average of £21,314 to help their children get on to the property ladder, a new study has found.



These latest figures from the Alliance & Leicester come as the average cost of a first home has risen to £162,055, meaning that many prospective buyers need help to get out of the rental accommodation sector.

Research carried out by the lender found that 20 per cent of the parents questioned had already dipped into their savings in order to give their offspring a helping hand on to the property ladder, with 22 per cent planning to offer their financial assistance when their children come round to buying their first home.

However, less than one in five of the first-time buyers polled by the firm said that they have asked or plan to ask their parents for financial help to make the move.

Stephen Leonard, director of mortgages at Alliance & Leicester, said: "Whatever the motivation, many parents feel a strong urge to support their children financially when buying their first home.

"However parents should also remember that as well as helping their son or daughter to fly the nest, investing in a property through a buy to let mortgage, or loaning the money could benefit their own future financial security as well," he added.

The comments come soon after a study by ING Direct found that homebuyers spend an average of just 17 minutes making their minds up over a prospective new property, highlighting the growing pressure being placed on buyers to make a purchase.