With 87% of first-time buyers (FTBs) asking for financial help from family, reasearch from Barratt Redrow has revealed many buyers are not aware of the other options available to them.
The survey found 62% of FTBs purchased with help from family, mainly from parents, but also grandparents, aunts, uncles or siblings.
Just over half of families gave £16,000 or more towards a house.
Over three in five parents and grandparents had inherited the money they gifted.
Most families gave money with no expectation of repayment, with many feeling guilty about how tough it was for younger people to buy.
One in three families giving support worried it would affect their own standard of living.
Some said gifting meant delaying retirement, giving up holidays, or struggling if the cost of living worsened.
In addition, there was a 5% year-on-year drop in FTBs who received help from family in the last year.
Adrian MacDiarmid, head of mortgage relations at Barratt Redrow, said: “We’re continuing to see a significant number of first-time buyers turning to family for help getting onto the property ladder.
“With rising house prices and the increased cost of living, support from parents and other family members remains crucial for many.
“Our research found that not enough first-time buyers and their families are aware of schemes to help them, from Government, new build developers, and lenders.”
MacDiarmid added: “There are a wide range of schemes available to support first-time buyers, meaning family support isn’t the only route to homeownership.
“At Barratt Redrow, we’re focused on offering a mix of affordable homes and tailored support to help more people to take their first step onto the property ladder.”
MacDiarmid said buyers could look at options such as low deposit mortgages, Government schemes like First Homes and Shared Ownership, reduced rate mortgages for new builds, 100% mortgages for those with a strong rental record, and special deposit contributions for key workers.
He added that buyers should speak to a mortgage broker early to find out what they can afford and which schemes might help them.
