As survey by Openwork revealed one in three parents felt they didn’t have enough understanding of how to run the Bank of Mum and Dad properly.

They were particularly interested in learning more about tax breaks and incentives which might arise as a result of gifting or loaning children the money to buy their first home, with many saying they would welcome more government guidance in this area.

Estimates from the London School of Economics suggest the Bank of Mum and Dad is the UK’s sixth biggest mortgage lender with families lending or gifting over £6 billion to help offspring onto the property ladder last year.

The study found the average donation was £24,100, increasing to £31,000 in London.

But despite its influence, Openwork discovered parents were highly unlikely to have any financial qualifications and would value financial advice to support them when considering how best to pass money onto their children.

Emergencies only

Openwork’s research shows many parents still think that the Bank of Mum and Dad should only be used for emergencies, with 60% of those surveyed saying financial support should be a last resort.

John Cupis, mortgage director at Openwork said: “As part of one of the UK’s largest mortgage lenders, parents clearly feel they need more financial insight to enable them to make the most appropriate decisions on helping children financially.

“It seems that few take legal or financial advice and considering the sums often involved, it is would be a good idea for parents to seek financial advice from a qualified financial planner so that they are able to make sound, rational and above all sensible decisions.

“Parents are often faced with a difficult choice between supporting their children or investing in their own retirement.  This is when a financial adviser can really help, sitting down with parents and talking through the available options to ensure wherever possible they can both support their children and have enough income available for the future.”