Almost half (41%) of parents are not in a position to provide any financial support towards helping their child get on the property ladder, research by Post Office Money has revealed.
Parents are instead contributing in other ways; 43% of parents letting their child live at home for free, 25% charging reduced rent, and 15% providing free childcare.
The report, using data from Opinium Research and the ONS, the parents of millennials have an average financial wealth of £52,746 or £70,704 in London.
Owen Woodley, managing director at Post Office Money, said: “Our research found that millennials can, on average, only save 7% of their income towards a deposit which, given high cost of homes in the UK, is leaving many chasing a dream but struggling to realise it.
“For reasons beyond their control, the vast majority of the younger generation will need help and we can see that parents are doing all they can to support their children.
“We are committed to helping to address these changing needs through developing innovative mortgage solutions for both first-time buyers and their parents.”
A majority of parents (81%) parents surveyed are happy to provide financial support if they can, however research showed that 43% of millennials who don’t think they’ll be able to afford a home feel it is because they won’t be able to afford a deposit in the near future.
In addition, 66% felt grateful to their parents as they felt more financially secure as a result.
Woodley added: “Whilst it is excellent to see the positive impact parental support is having on family relationships, it is important that families are having frank financial conversations.”