Over one in 20 home buyers this year used a gift for all or part of their deposit, helping to fund over 50,000 home purchases in England and Wales.
Conveyancer My Home Move says this year’s total of buyers relying on parent gifts - 5.04 per cent - was up from 4.71 per cent in 2014.
The number of so-called “boomerang kids” – young adults who return to the family home after moving out after school – has been rising over the long-term. Data from the Office of National Statistics shows that the proportion of adults living with their parents has increased from 36 per cent in 1996 to 40 per cent today.
The firm says parents looking to help their children with money towards a deposit need to ensure that they don’t get caught out by lenders’ anti-money laundering checks.
“First time buyers lucky enough to get a Christmas gift of money towards a home purchase need to know that when they have an offer accepted, their parents will have to go through some legal formalities to prove the money was theirs to give. Sorting out the paperwork early on can prevent delays later on when sellers might be impatient about a slowdown in the purchase” says the firm’s chief executive, Doug Crawford.