Research from Legal & General and the Centre for Economic Business and Research says parents are to spend 23 per cent more in 2017 helping offspring get on to the property ladder than they did last year.
“This highlights the supply-side crisis we have in UK housing and the critical need to build more homes, across all tenures and all forms of construction, to satisfy demand” according to a statement from Legal & General.
The firm says parents will lend over £6.5 billion in 2017, up from £5 billion in 2016, and providing deposits for over 298,000 mortgages.
It suggests the Bank of Mum and Dad is now on a par with the 9th largest mortgage lender in the UK and will be involved in 26 per cent of all 2017 property transactions.
Legal & General, a major player in the burgeoning Build To Rent market, says it intends to build 70,000 units over the next five to 10 years in the BTR, student accommodation, social housing and care home sectors.
“The growing role of the Bank of Mum and Dad in supporting young people get onto the housing ladder signifies that the UK property market is simply not building enough homes. This is not sustainable” says Bill Hughes, head of LGIM Real Assets.