New research has shown that house prices are so inflated, particularly in the capital, that the parents now help fund 26% of all UK property transactions, providing deposits for more than 298,000 mortgages in 2016.
This makes the Bank of Mum and Dad the equivalent of the ninth-biggest mortgage lender in the UK - making it bigger than Clydesdale Bank in the mortgage market.
This fact came to light whilst looking at the age spread of homebuyers over the quarter April to June, with the number of homebuyers aged 18-35 dropping 21%.
During this period, there were 17,000 (6.2%) fewer home moves overall. But:
- there were 1% more homemovers aged 66+ compared to the previous quarter;
- this is 55% increase on the same period last year;
- the number of homemovers in all other age brackets has fallen over the quarter, with those in the 18-25 and 26-35 age groups seeing the biggest drops.
Commenting on the study, Colin Bradshaw, chief customer officer at TwentyCI says: "As the rise of the more affluent and older homeowner continues, we are seeing real evidence of the Millennial squeeze".
The report also found that growth is being driven by the top end of the market, with an increase in buyers in higher income brackets. Figures show there has been a significant jump this quarter for sales of properties over £750,000.