An estimated 318,400 housing transactions will receive financial support from family members in 2023, according to new research from Legal & General (L&G) and the Centre for Economics and Business Research (Cebr).

This is the highest number of property purchases that the “bank of family” has ever supported since L&G began tracking family lending in 2016.

In previous years, L&G has logged this lending as the “bank of mum and dad”, but this year the group has referred to its research as the bank of family, suggesting the term more accurately reflects the contribution of other members and the breadth of modern family structures.

Following a dip in lending during the COVID lockdowns, the value of financial support offered by families resumed its dramatic growth. The average amount of money gifted by family is expected to hit £25,600 this year, while total lending is expected to reach £8.1bn in 2023, up 50% on 2020.

L&G’s analysis indicated that the total value of properties bought with bank of family assistance is predicted to reach £124.6bn this year.

This increasing reliance on financial support from parents, grandparents, other family, and friends underlines the challenges faced by aspiring buyers who don’t have access to this support. According to the research, 2023 will see the bank of family provide support for 47% of house purchasers under the age of 55.

A majority (58%) of financial support from the bank of family currently goes to first-time buyers, and L&G stated it is these groups who are major recipients of family funding, likely because they are comprised of buyers who might otherwise struggle to save the necessary deposit for home purchase.

“Family wealth is increasingly becoming a prerequisite for homeownership, effectively locking some groups out of the housing market for years while they save for deposits, or even altogether,” said L&G Retail CEO, Bernie Hickman. “While family gifting has always played a prominent role in the UK housing market, our study shows that the value of those contributions has risen by more than a quarter on pre pandemic levels.

“An increasing reliance on family members isn’t only an issue for those seeking to buy – it is important to acknowledge the financial strain it can place on the giver, particularly if they are undertaking this commitment without financial advice.

“By dipping into savings and pensions, family members may be compromising on their own retirement incomes. A housing system which relies too heavily on gifted deposits not only perpetuates inequality today, but could create risks for the older generations of the future.”

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