More than a third (35%) of homeowners rely on financial help from family and friends to move up the property ladder, according to Lloyds Bank.
Out of 525 people surveyed, 32% need an average of £21,231 from their parents to secure their next home.
9% would borrow money from their grandparents, while 6% would borrow from friends.
Of those who need financial support, 47% believe their parents would have to cut back in order to help them move up the property ladder.
63% plan to use the equity from their current property to get the deposit they need to move and 41% would use their personal savings.
Homeowners also spoke about what delayed them from purchasing their next home:
- not finding the right property (32%)
- lack of affordable property available (26%)
- the cost of stamp duty (24%).
Andy Mason, mortgage director at Lloyds Bank, said:
“Parental support continues to play a vital role in helping young people to get on the property ladder. However, it is clear that despite improved conditions for this part of the housing market, ‘second steppers’ will still rely on the BoMaD, with hard-pressed parents being once again called on for financial help.
“Without this extra financial support, second steppers believe that they wouldn’t be able to make the next move on the property ladder for some time.”
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