Parents are twice as likely to offer their adult children a significant sum of money if they knew it would be protected by a formalised loan, to be repaid over an agreed period of time, according to new research by Generation Home.

The research was conducted by Censuswide research in April among 1,003 parents of children aged 18 to 34 in the UK.

When asked how much parents would be willing to gift, 10% said £10,000 to £50,000, but that almost doubled to 19% if they knew the loan was going to be repaid.

Parents said they will part with an average of £13,088 to help support their children’s future savings goals, but if the money was guaranteed to be treated as a loan this amount increases to £22,093.

The average UK house price now costs approximately £277,000 and full-time workers can expect to spend at least 9.1 times their annual earnings to be able to afford a home.

The new research found that parents’ savings are also under pressure from everyday bills and the cost-of-living crisis, with 37% open to the idea of gifting financial support but simply unable to do so.

However, just under half the parents surveyed would prioritise helping with the deposit for their child’s first home, compared to 10% for higher education, a wedding, or 7% for a car.

Overall, 67% of parents said they would help financially with 26% happy to gift money without any agreement on how it would be spent.

Generation Home says the findings show there is a growing realisation from both parents and young adults that major financial milestones – such as buying a first home – won’t be possible without adequate financial support. 

Generation Home co-founder Sophia Guy-White says: “With so many factors stacked against first-time buyers amid the backdrop of this year’s even tougher financial climate, it’s easy to think the doors of the property market are completely slammed shut.”