First-time buyers 'turn to family for help'

First-time buyers are increasingly turning to their family for help in raising a deposit, according to an expert.

Bernard Clarke, a spokesperson for the Council of Mortgage Lenders (CML), said that the trend has become more common as many parents have experienced equity growth in their properties and can use it to help their children.

He said: "If you were a homeowner through the 1980s and 90s – if you''ve held property over a long period of time – you''re likely to have seen a significant equity growth.

"And if you have any mortgage left on your property, it will only be a very small one."

However, he warned that due to reports of a slowdown in the property market, parents may be "a little bit more reluctant" to do it in the future.

According to statistics from the CML released earlier this year, first-time buyers represented over a third of all house purchasers.

It also found that the average first-time buyer borrowed around 88 per cent of their property value.

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