For many years first time buyers have struggled to get onto the property ladder for one reason or another. For a number of years the problem has been the soaring price of property in the UK, but more recently, even thought house prices have been falling, other problems have emerged for first time buyers. This includes far tighter credit conditions, making it difficult for some first time buyers to get finance, and higher deposit requirements from lenders, which decreases affordability for the average first time buyer.

It is little wonder, therefore, that many first time buyers have been turning to their parents for help when it comes to getting a mortgage. In fact, according to recently released figures nearly half of first time buyers aged thirty or under have been turning to their parents for assistance, and this compared to around 38 percent in 2006.

Another problems that has affected first time buyers, resulting in an increased number needing assistance from parents, is the fact that 100% mortgages have been pulled from the shelves.

The Council of Mortgage Lenders said: “In the current market environment, 100% mortgages are not so widely available. Many lenders typically require a higher deposit from borrowers than before. So even though the total needed to buy a house is declining, first-time buyers are facing a new affordability challenge in the shape of a higher deposit required by lenders.”

There are concerns, however, that the recession and ongoing financial problems could mean fewer parents being able to help out their kids in the future, and this could mean a further slowdown in the housing market.

One official said: “If this flow of help for young buyers dries up, then opportunities for young would-be buyers to enter the market could be severely limited, and we may see their numbers decrease significantly beyond what are already record low points.”

He added: “In London, the typical assisted first-time buyer had a £67,000 deposit and an average income of £42,000. In very stark contrast, unassisted buyers in the capital had a typical deposit less than a third of this size – just £19,000 – but typically need a much higher income of £57,000.

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