The proportion of first-time buyers receiving help from family to fund their deposit has jumped from 22% to 33% over the past year, new research by Aldermore has found.

Parents are going to greater lengths to support children with 38% remortgaging their property, compared to just 7% before the pandemic.

Funding came from selling an asset such as a car or a holiday home for 38% of parents, while 36% released equity from their property.

While parents continue to be the main source of help for 93% of those getting money from family, other relatives are also contributing, with 45% receiving cash from grandparents.

Aldermore head of mortgage distribution Jon Cooper says: “Young people have had a stark fall in home ownership the past two decades, as the challenging environment of high house prices, shortage of suitable homes, and weak wage growth have hindered home buying chances. 

“The Covid-19 pandemic has only increased the difficulties faced by new buyers meaning the Bank of Mum and Dad providing support has increasingly become a necessity, rather than just a helping hand.

“This generation of first time buyer is more diverse in financial circumstances than ever before, but there are also more pathways to home ownership than a decade ago. 

“It may feel daunting and confusing at times so we would recommend seeking advice from a mortgage broker that can give a whole of market view of both high street and specialist lenders so new buyers get the options that suit their individual circumstances.”